BAKU, Azerbaijan, May 9. The Executive Board of the International Monetary Fund (IMF) has approved its medium-term budget for fiscal years 2027–2029, set against a backdrop of continued global economic resilience but persistent uncertainty driven by geopolitical tensions, including the war in the Middle East, Trend reports.
The Fund noted that the global economy, while stable in recent years, is undergoing “profound transformations” and remains exposed to “elevated uncertainty and unexpected shocks,” with member countries continuing to rely on IMF support across its full operational toolkit.
The approved net administrative budget for FY2027 (May 1, 2026–April 30, 2027) stands at US$1.601.3 billion, aligned with projected income and the trajectory for precautionary balances.
The IMF also confirmed a structural adjustment to its budget framework, reducing the maximum level of unused budget resources carried over from previous years from 4% to 3%, marking the completion of the unwinding of pandemic-era temporary funding measures.
The capital budget for FY2027 is set at US$129.4 million, with spending priorities shifting toward essential lifecycle maintenance across headquarters and field offices.
A significant share of investment will go to IT modernization, with the IMF aiming to strengthen cybersecurity, address historical underinvestment, and expand the use of artificial intelligence across core operations.
In a separate assessment, the IMF Executive Board completed its review of the Fund’s income position for FY2026 and FY2027–FY2028.
The Fund’s General Resources Account (GRA) net income — before a proposed distribution and transfer of US$1.90 billion (SDR 1.38 billion) into the Investment Account for Post-Employment Benefits (IPAA) — is projected at around US$2.5 billion (SDR 1.8 billion).
Total comprehensive income for FY2026 is expected to reach US$5.2 billion (SDR 3.8 billion), supported by pension-related remeasurement gains and retained investment income.
The IMF said: “Given the positive income position, the Fund’s precautionary balances are expected to increase to US$35.9 billion (SDR 26.2 billion) at the end of FY 2026,” exceeding the medium-term target of SDR 25 billion.
Looking ahead, projections for FY2027 and FY2028 indicate GRA net income of about US$2.6 billion (SDR 1.9 billion) annually, prior to expected allocations to the IPAA.
However, the Fund cautioned that the outlook remains uncertain, noting sensitivity to lending activity, market-driven income fluctuations, and broader geopolitical and financial risks.
It emphasized that while income streams remain diversified, “elevated geopolitical risks, financial market volatility, and sensitivity to key assumptions” continue to shape the medium-term outlook.
