FY2025–FY2027 Medium-Term Budget

May2024 IMFPOLICYPAPER FY2025-FY2027MEDIUM-TERMBUDGET IMFstaffregularlyproducespapersproposingnewIMFpolicies,exploringoptionsforreform,orreviewingexistingIMFpoliciesandoperations.Thefollowingdocumentshavebeenreleasedandareincludedinthispackage: APressReleasesummarizingtheviewsoftheExecutiveBoardasexpressedduringitsApril25,2024considerationofthestaffreport. TheStaffReportontheMedium-TermBudgetwaspreparedbytheIMFstaffandcompletedonMarch28,2024fortheExecutiveBoard’sconsiderationonApril25,2025. TheIMF’stransparencypolicyallowsforthedeletionofmarket-sensitiveinformationandprematuredisclosureoftheauthorities’policyintentionsinpublishedstaffreportsandotherdocuments. ElectroniccopiesofIMFPolicyPapersareavailabletothepublicfrom http://www.imf.org/external/pp/ppindex.aspx InternationalMonetaryFundWashington,D.C. ©2024InternationalMonetaryFund PR24/150 IMFExecutiveBoardApprovesFY2025–FY2027Medium-TermBudget FORIMMEDIATERELEASE Washington,DC—OnApril25,2024,theExecutiveBoardoftheInternationalMonetaryFundapprovedthe2025-27financialyears(FY25-27)medium-termbudget.Whiletheglobaleconomyhasshownresiliencetosuccessiveadverseshocks,theoverallglobaleconomiccontextremainscomplexwithslowandunevengrowth,increasedfragmentation,deepeningdivergence,andstillhighinterestratesdespiteeasinginflationarypressures.ThisenvironmenthascontributedtosustainedhighdemandforFundfinancialsupport,andmoregranularandcountry-tailoredpolicyanalysis,advice,andcapacitydevelopment.TheBoardrecognizedtheimperativefortheFundtocontinuetoadapttomembers’evolvingneeds,helpingthemsafeguardmacroeconomicstabilityandrebuildbufferswhilebolsteringinternationalcooperationtosupportongoingstructuraltransitionsrequiringjointaction. TheBoardnotedthattheFund’sbudgetisinatransitionperiod.Thisreflectsboththeunwindingoftemporaryresourcesthathelpedaddressurgentpandemic-relatedworkaswellasthecompletionofthethree-yearstructuralaugmentationtohelpmemberstacklemacro-criticalchallengesrelatedtoclimate,digitalmoney,macrofinancialsurveillance,fragility,andinequality.AgainstthisbackdropandrecognizingthesustainedhighworkloadanddemandsonFundstaff,theBoardemphasizedtheimportanceofreprioritizationtosupportthecontinuedbudgetagilityanddisciplinewhichguidedtheformulationoftheFY25-27budgetandofstrongcooperationwithotherinstitutions.TheyalsowelcomedthecommitmenttoreturntoaflatrealbudgettrajectoryinFY26. TheapprovednetadministrativebudgetforFY25(May1,2024–April30,2025)totalsUS$1,501million,consistentwithprojectedincomeandthepathfortheprecautionarybalancestarget.Thebudgetincludesthefinaltrancheofthestructuralaugmentation (2percentofthenetadministrativebudget)insupportofworktowardsagreener,digital,andmoreinclusiveglobaleconomy.Italsoincludesaone-offincreasefortheExecutiveBoardtorestorestaffinglevelstothosebeforethe2008downsizing,supportthecreationofa25th chair,andaddressbroaderworkpressures,afterincorporatinginternalsavings.Themaximumamountofunusedbudgetresourcesthatcanbecarriedforwardfrompreviousyearswillbereducedfrom6to5percentoftheunderlyingbudgettocontinuethegradualunwindingoftemporarypandemic-relatedresourcingintroducedinFY21. TheBoardalsoendorsedthefinalofathree-yearstepincreaseintheexternallyfundedspendinglimitapprovedlastyeartosupportcapacitydevelopment(CD)effortsinthestructuraltransformationareas. TheFY25capitalbudgetissetatUS$122millionandwillsupportfacilitiesinvestments—amongthem,lifecyclereplacementsandupgradestofieldoffices—aswellasIT-intensiveinvestments,includingassociatedcloudlicensecosts. AdditionalinformationcanbefoundinthestaffpaperontheFY25-27Medium-TermBudget. March26,2024 FY2025-FY2027MEDIUM-TERMBUDGET EXECUTIVESUMMARY Context.Theglobaleconomicenvironmentremainscomplex,withthemembershipfacinganincreasinglyshock-proneworld,increasedfragmentation,andlonger-termstructuralchallenges,drivingstrongdemandforFundengagement. FY25-27budgetframework.Thebudgetisintransitionfromagrowthtostabilizationphase,withallocationofthefinaltrancheoftheFY23-25augmentationinFY25roughlymatchedinscalewiththecontinuedunwindingofexceptionalpandemic-eratemporaryfundingandwithaflattrajectoryprojectedforFY26andFY27.Ongoingreprioritizationfocusesonaligningresourceswithmembers’needsandinstitutionalpriorities,guidedbyprinciplesofagilityanddisciplineandrecognizingtheneedfordifficulttrade-offsgivenhighworkpressuresandcompetingdemandswithintheconstrainedbudget. FY25netadministrativebudget(NAB).TheproposedNAB($1,501million,nominal)includesthefinalaugmentationtranche(2.1percentoftheNAB)andaone-offincreasetotheExecutiveBoard(OED)budget(0.6percentoftheNAB),includingtosupportcreationofa25thChair.Itcontinuestorecognizestrongdemandsintraditionalareas,whileincorporatingworktowardagreener,digital,andmoreinclusiveglobaleconomy. Externalfunding.Theexternallyfundedbudget($276million,nominal)reflectsthecontinuedrecoveryofin-persondeliveryofcapacitydevelopmentactivities.Aspartofthethree-yearincreaseintheexternallyfundedspendinglimitagreedinFY22,a 6percentrealincreaseisproposedtosupportthestructuraltransformationagenda. FY25ca