Press Release No. 23/184

IMF Executive Board Approves FY2024–FY2026 Medium-Term Budget

May 31, 2023

Washington, DC—On April 27, 2023, the Executive Board of the International Monetary Fund considered the 2024-26 financial years (FY24-26) Medium-Term Budget against a complex global economic backdrop. While the pandemic is receding in many countries, the global impact of Russia’s invasion of Ukraine, intensifying geopolitical fragmentation, and multi- decade high inflation have contributed to a significant rise in demand for Fund financial support and for more granular surveillance advice. Recent financial sector developments provide a reminder that the outlook remains subject to high uncertainty and downside risks.

The Board recognized the imperative for the Fund to continue to adapt to members’ needs in an increasingly shock-prone world and to support their efforts to strengthen resilience in the face of longer-term structural challenges working in close cooperation with external partners.

The Board welcomed the Fund’s continued commitment to strict budget discipline through robust savings and reprioritization. Executive Directors endorsed the allocation of the second phase of resources as part of the three-year targeted budget augmentation framework approved in 2022. These new resources are linked to tackling the macro-critical challenges of climate change and the rise of digital money, while reinforcing the Fund’s work on macrofinancial surveillance, fragility, and inequality. The Board reiterated its expectation that the Fund would return to a flat real budget trajectory in FY26.

The approved net administrative budget for FY24 (May 1, 2023–April 30, 2024) totals US$1,411 million, consistent with projected income and continued progress towards the precautionary balances target. The budget includes a 2 percent structural augmentation. The maximum amount of unused budget resources that can be carried forward from previous years will be reduced from 7 to 6 percent of the underlying budget to continue the gradual unwinding temporary pandemic-related resourcing introduced in FY21.

The FY24 capital budget is set at US$108 million and reflects the resumption of facilities- related investments including hybrid workspace and field-based needs, continued stabilization of information technology investments, and a projected increase in cloud costs.

The Board also endorsed the second of a three-year step increase in the externally funded spending limit approved last year to support capacity development (CD) efforts in the structural transformation areas.

Additional information can be found in the staff paper on the FY24-26 Medium-Term Budget.