COVID-19: IMF Notes on Fiscal Issues

The IMF published a series of notes in its Special Series on COVID-19. The notes discuss PFM issues and other fiscal topics. The Special Series notes are produced by IMF experts to help member countries address the economic effects of COVID-19.

 In addition, you can find all of the PFM Blog articles covering the COVID-19 crisis  on our PFM Blog Coronavirus Articles page.

Nigeria’s Targeted Credit Facility for COVID–19

 
Posted by Chukwuemeka O. ONYIMADU[1]

The world economy is enduring a staggering downturn amidst the spread of COVID-19. Individuals and corporate organizations are already suffering from immediate losses of income, profits and employment status. The downturn has had a particularly harsh impact on workers in unstable and informal types of employment. The imposed economic slowdown has left many workers and entrepreneurs confined to their homes. In many developing countries, the nature of the labor market constrains the ability of these people to earn income.

No Calm after the Storm: Retooling PFM in the Health Sector

Posted by Helene Barroy, Srinivas Gurazada, Moritz Piatti-Fünfkirchen, and Joseph Kutzin[1]

The country response to COVID-19 has been extensively studied from a fiscal perspective. The speed and effectiveness of each country’s health response has varied widely, often due to pre-existing weaknesses and bottlenecks in their public financial management (PFM) systems. To better understand how PFM processes supported the allocation and utilization of public funds for the health response, the World Health Organization (WHO) conducted a quick review of 183 countries. Five key learning points are emerging:

How PEFA can Help Countries Develop their PFM Reform Strategy

Posted by Julia Dhimitri and Martin Bowen[1]

The PEFA Secretariat has recently developed and pilot tested a new approach to preparing a country’s PFM reform strategy. The approach aims at assisting countries to identify, prioritize and sequence reform initiatives, and to take charge of their own reform agenda. Volume IV of the PEFA Handbook-Using PEFA to support PFM improvement provides guidance on the new approach.

Reallocating Aid Budgets to Respond to COVID-19

Posted by Mark Miller and Bryn Welham^[1]

Development agencies’ budgets are experiencing two shocks as a result of COVID-19.  First, there is extra demand to support countries’ response to the impacts of the pandemic.  Second, the supply of aid is also coming under pressure. Many donor countries are unfortunately opting to cut back aid spending at a moment when it is more needed than ever.  If you are a bureaucrat sitting in a development agency, what can be done to reallocate budgets to shifting priorities?

Open Budgets in the COVID-19 Era

Posted by Vivek Ramkumar and Paolo de Renzio[1]

We began writing the global report for our latest Open Budget Survey (OBS 2019) several months ago, amid a backdrop of mass demonstrations across the world. In France and Iraq, Chile and Lebanon, Haiti and Ecuador, people were mobilizing against the rising cost of living, cuts in public services and increasing taxes. This anger reflected broad concerns with growing inequality, exclusion, and lack of trust in government—all linked to how public resources are managed. We framed the need for open budgets as part of a broader call for economic and political renewal, and for reconnecting governments and their citizens.

PFM Actions by Indian States to Combat COVID-19

Posted by Ashok Rao[1]

The global pandemic is posing unprecedented challenges in fiscal management to governments across the world. Typical PFM responses from national governments have included increased spending on fiscal stimulus packages, deep spending cuts in other areas, reallocation of budgets to finance emergency spending, relaxation of internal controls and procurement laws, and decentralization of financial powers to facilitate quicker decision making.

IMF’s Popular PFM Online Course Relaunched for 2020-2021

Posted by Fabien Gonguet[1]

The Fiscal Affairs Department relaunched its online course on Public Financial Management (PFM) on May 1, 2020, to remain open year-round. In its three previous offerings, this free course has been taken by nearly 5,000 participants from virtually every country, with very high satisfaction rates. Developed and taught by more than 15 experts of the Fiscal Affairs Department, the course is open for government officials and staff of bilateral and multilateral development agencies, but also to civil society organizations, parliamentarians, academics and the general public, which represent 3 out of 10 active participants.

New in this 2020-2021 edition of the course is a page on “PFM and COVID-19” which will be updated periodically. And a brand-new video has been added to the course (see below).

Managing Public Investment Spending during the COVID-19 Crisis

Posted by Richard Allen and Eivind Tandberg[1]

A recently published IMF Note discusses the role public investment management can play in the fiscal response to the COVID-19 crisis. Public investment has several characteristics that makes it attractive for both spending cuts in the initial phase of the crisis and boosts to support economic recovery later. It is largely discretionary, lumpy with most spending concentrated over a few years, and it makes a substantial contribution to economic activity, especially in low-income countries.

COVID-19: New IMF Notes on Fiscal Issues (Batch 4)

The IMF published on May 13, 2020 the following notes in its Special Series on COVID-19. The notes discuss PFM issues and other fiscal topics. The Special Series notes are produced by IMF experts to help member countries address the economic effects of COVID-19.

Efficient Public Contracting for Emergency Responses

Posted by Lindsey Marchessault[1]

COVID-19 has ground the global economy to a halt. To address the crisis and help the recovery, governments must make the most out of limited public resources to effectively fight the virus, protect their populations, and rebuild their economies. With huge public spending being committed to fight the disease, it is more important than ever that public contracting delivers value for money.