Technical Assistance Reports
2024
June 28, 2024
Bangladesh: Technical Assistance Report-Interest Rate Corridor Adoption
Description: In August 2023, the IMF South Asia Regional Training and Technical Assistance Center (SARTTAC) undertook a Technical Assistance (TA) Mission at Bangladesh Bank (BB) to advise on the shift from a reserve money targeting monetary policy framework to an interest rate-focused one. This transition, announced by BB for July-December 2023, marks a significant policy shift, and it provides an opportunity to realign BB's governance and operational frameworks with the new monetary policy framework. Crucial to this transition is the amendment of the Bangladesh Bank Order (BBO) to give priority to price stability as the objective of monetary policy, to enhance BB's autonomy and accountability, and to eliminate direct BB lending to priority sectors. These modifications aim to align the governance structure with the objectives of the updated monetary policy framework. The mission suggested several key adjustments to the operational framework, including the implementation of a weekly 7-day Open Market Operation (OMO) at the policy rate; an increase in Cash Reserve Ratio (CRR) averaging; automatic access to Standing Facilities (SFs), and the harmonization of the legal framework for collateralized liquidity-providing monetary operations. Additionally, the mission proposed future measures to improve short-term liquidity forecasting and interbank market trading. Supportive measures were also recommended, such as normalizing the foreign exchange market with a clear exchange rate policy; engaging in money market development initiatives; participating in the Local Bond Market development project; and revising BB’s communications policy to enhance transparency. These reforms are designed to improve monetary policy transmission so as to support the achievement of BB’s its primary mandate of price stability, as a prerequisite for macroeconomic stability and stable economic growth.
June 14, 2024
Dominica: Technical Assistance Report-Improving Estimates of Gross Domestic Product (August 29–September 8, 2023)
Description: A joint CARTAC, IMF capacity development engagement with the Central Statistics Office (CSO) in the Ministry of Finance in Dominica to improve estimates of Gross Domestic Product (GDP) was undertaken. The capacity development focused on three main aspects: supporting improvements of the GDP series in line with the 2008 SNA standards, including training for re-referencing the volume estimates of GDP; identifying data holdings which could be used to improve the quality of the estimates; and developing a work program for improving the timeliness of macroeconomic statistics in Dominica. Administrative data including value added tax data was used to compliment survey based estimates to enhance the current price estimates of GDP. To identify potential other data sources, meetings with various government stakeholders took place to discuss accessibility of data to continue to improve the quality of the macroeconomic estimates in the future. In addition to re-referencing the volume estimates of GDP to 2018 prices (from the existing 2006 base year), refinements to the GDP compilation system were developed to increase the capacity development of the staff to maintain and update the compilation of macroeconomic statistics in the future.
June 12, 2024
Republic of Poland: Technical Assistance Report-Aligning the Stabilizing Expenditure Rule to the European Union Fiscal Framework
Description: The stabilizing expenditure rule (SER) in Poland has been instrumental in fostering fiscal discipline in the years leading up to the pandemic. The pandemic and subsequent shocks severely tested the expenditure rule. Returning to the SER limit after severe shocks proved challenging, making clear the needs to revise the SER to preserve its credibility. The government could enhance the credibility of the expenditure rule through broadening its coverage and strengthening compliance, including establishing an independent fiscal council. Moreover, aligning to the EU fiscal framework will require (i) ensuring expenditure limits implied in the SER to be consistent with the EU net expenditure path; and (ii) providing explanation on the differences in expenditure coverage and classification between the SER and the EU fiscal framework to ensure compliance. Over time, transition to binding multi-year limits in the SER would improve linkages between annual budgets and medium-term fiscal planning.
June 10, 2024
Georgia: Technical Assistance Report-Report on Government Finance Statistics for State-Owned Enterprises Mission (January 16-27, 2023)
Description: This technical assistance (TA) mission on Government Finance Statistics (GFS) was conducted in Georgia during January 16– 27, 2023. The main purpose of the mission was to assist the authorities in extending GFS coverage to include non-market State-Owned Enterprises (SOEs) and aligning fiscal reporting requirements to the IMF and the European Union. The mission also reviewed the progress made by the authorities in implementing previous TA recommendations.
June 10, 2024
Georgia: Technical Assistance Report-Report on Government Finance Statistics for State-Owned Enterprises Mission (April 26-May 24, 2021)
Description: This technical assistance (TA) mission on Government Finance Statistics (GFS) was conducted in Georgia during April 26 – May 24, 2021. The main purpose of the mission was to assist the authorities in extending GFS coverage to include non-market State-Owned Enterprises (SOEs) and aligning fiscal reporting requirements to the IMF and the European Union. The mission also reviewed the progress made by the authorities in implementing previous TA recommendations.
June 7, 2024
Republic of the Marshall Islands: Technical Assistance Report-Consumer Price Index Mission (January 15-26, 2024)
Description: A technical assistance (TA) mission was undertaken with the Economic Policy, Planning and Statistics Office (EPPSO) of the Republic of the Marshall Islands (RMI) between January 15–26, 2024. The mission assisted the EPPSO to update their consumer price index (CPI). The tasks completed included resampling the basket of goods and services and estimating new expenditure weights. The new weights are based on the results of the 2019/2020 household income and expenditure survey (HIES). An action plan for updating the CPI was developed and agreed with the authorities.
May 31, 2024
Bangladesh: Technical Assistance Report-Ministry of Finance Macroeconomic Framework Technical Assistance: Scoping Mission Report
Description: This technical assistance (TA) report presents the outcomes of the scoping mission of a new TA project aimed at building capacity in macroeconomic forecasting and policy analysis in the Finance Division (FD) of the Bangladesh Ministry of Finance (MoF). The FD has sought Macroeconomic Framework Technical Assistance from ICD and SARTTAC to support them in enhancing their Medium-term Macroeconomic Framework. A scoping mission was held in Dhaka in January 2023 to diagnose the FD’s current forecasting and policy analysis systems and to agree on a multi-year action plan. The project action plan is centered around the customization of the Macroframework Foundations Tool (MFT), which will support the FD in overcoming limitations in their current approach.
May 28, 2024
Suriname: Technical Assistance Report-Assessing the Launch and Administration of VAT in Suriname
Description: At the request of the Directorate of Taxes and Customs, a technical assistance mission evaluated how the authorities launched the Value Added Tax (VAT), administered the tax in the first 12-months of operation, and provided advice on improving the efficiency of the administration of VAT. Suriname implemented a VAT on January 1, 2023, replacing the Sales Tax. VAT revenue collected for the first 12 months was approximately 3 percent of Gross Domestic Product (GDP) and was 95.4 percent of the collection target. The weaker than expected VAT performance can be attributed to how the VAT implementation was managed. The authorities were not sufficiently prepared to effectively implement and administer the VAT. Several risks have been identified, and if not urgently addressed, there may be weaker VAT revenue collection, continued weak filing and payment compliance, which pose a challenge to the authorities’ fiscal program.
May 24, 2024
Guinea: Technical Assistance Report-Climate Change and Gender Budgeting
Description: [This report is only available in French] This technical report discusses ways to introduce climate and gender budgeting (CGB) in Guinea’s budget cycle. To this end, it develops an integrated approach to incorporate into the budget cycle both climate and gender (CG) aspects, as part of priorities-based budgeting, which could serve in similar contexts. Moreover, there was no program-based budget, as tagging climate and gender expenditures at the level of a program is more comprehensive and commonly suggested. The report supports that the introduction of CGB would facilitate and inform program budgeting initiatives. In Guinea, integrating climate aspects in the budget cycle face several challenges, including a proliferation of institutions involved. On gender, despite the adoption of key legislation and a national strategy on gender equality, there were limited sectoral diagnostics and sex-disaggregated statistics to cover gender transversality. The implementation of CG related national strategies is not completely translated into measures, actions, and associated costs. In addition to proposing a method for CGB tagging, this report proposes six high-priority recommendations that could significantly help integrate CG in the budget cycle in the short to medium term. The report also includes a couple of tools, which would help to successfully introduce and present CG aspects in the budget cycle. Guinea; Climate change; gender inequality; Budget cycle; budget planning and preparation; program-based budgeting; public investment spending; fiscal reporting; expending tagging; public financial management.
May 17, 2024
Costa Rica: Technical Assistance Report-Universal Basic Pension: Objectives and Constraints
Description: At the request of the Ministry of Finance, a mission from the International Monetary Fund visited San Jose. The purpose of the mission was to assess the proposal to a universal basic pension and to estimate its fiscal and welfare impact on the budget, on pension schemes, and on old age income poverty. Costa Rica is entering a demographic transition which will see the old age dependency ratios significantly worsen in the coming 20 years. The long-term financial sustainability of the general social security pension scheme (IVM) is a concern, despite various reforms introduced over the past three decades and the scheme’s reserves are expected to be exhausted by the mid-2030s. The government’s proposal intends to address financial sustainability, the adequacy of coverage and of benefit levels, as well as distributional equity through the introduction of a universal basic pension. The IMF team’s assessment is that the proposal is unlikely to fully meet its stated objectives. The proposal will worsen social security pension scheme’s financial sustainability and create additional financing needs. This will translate into an accelerated exhaustion of IVM reserves and, after the reserves are depleted, require significant adjustments to IVM parameters or higher government transfers. Old age income security may be more effectively addressed, with less pronounced fiscal side-effects, through improving coverage and compliance in IVM and expanding the reach of the social pension scheme. The primary instruments of achieving these goals are: (a) amending the rules undermining compliance with registration and wage reporting regulations in the contributory schemes, (b) improving coordination between tax and contribution collection agencies, (c) amending the regulations governing eligibility for noncontributory social pensions and (d) ensuring the noncontributory social pension is adequately financed.