Social safety nets (SSNs) are focal policies that support poor and vulnerable households, most prominently through cash transfers. However, strong discrepancies persist across countries in terms of spending, coverage, and targeting of SSNs, with larger gaps often found in low-income countries. Digital technologies can prove vital in supporting a rapid expansion of SSNs around the world. Governments need to do three things for this: identify, verify, and pay. This note explains how countries can make considerable improvements across these three dimensions despite differences in capacity levels. It examines six case studies of countries―Brazil, Democratic Republic of Congo, India, Pakistan, Togo, and Türkiye―that used and adapted digital technologies in different ways due, in large part, to variations in digital SSN infrastructures in place before the onset of COVID-19. These case studies illustrate how (1) innovative digital technologies can help overcome lack of government capacity to implement SSNs, even in countries with a lack of digital infrastructure or capacity, and (2) countries with stronger digital infrastructure or investments in SSNs before COVID-19 were able to complement existing policies to reach more people and to provide stronger responses than countries without preexisting SSN frameworks.
The surge in energy and food prices, which was amplified by Russia’s invasion of Ukraine, has prompted a flurry of policy responses by countries during 2022. The aim of these policy responses was to mitigate social and economic impact of higher prices. In this paper we document announcements of policy measures based on the Database of Energy and Food Price Actions (DEFPA), which was developed based on two rounds of survey responses of IMF country teams conducted in March/April and June/July of 2022. The paper also provides discussion on policy trade-offs when considering appropriate policy responses both for countries with strong and weak social safety nets. Key policy message is that providing targeted support to households in the form of cash transfers is the most cost-effective way of alleviating the burden on vulnerable households and have to be preferred over broad-based mechanisms that prevent international prices to pass through to domestic consumers.
Foundational digital public infrastructure (DPI), consisting of unique digital identification, payments system and data exchange layer has the potential to support the transformation of the economy and support inclusive growth. India’s foundational DPI, called India Stack, has been harnessed to foster innovation and competition, expand markets, close gaps in financial inclusion, boost government revenue collection and improve public expenditure efficiency. India’s journey in developing a world-class DPI highlights powerful lessons for other countries embarking on their own digital transformation, in particular a design approach that focuses on shared building blocks and supporting innovation across the ecosystem.
Achieving fiscal consolidation without undermining growth and poverty-reduction efforts is a key policy challenge in many countries. Using India as an illustration, this paper shows how a mix of well-designed taxation and spending policies can help address these challenges. On the tax side, the analysis focuses on increasing consumption taxes on goods with negative consumption externalities. On the spending side, some of the additional revenues from the tax reform are allocated to scaling up key social transfer programs. Substantial additional gains are possible if the increased social transfers can be accompanied by improved targeting.
This paper assesses the additional spending required to make substantial progress towards achieving the SDGs in Pakistan. We focus on critical areas of human (education and health) and physical (electricity, roads, and water and sanitation) capital. For each sector, we document the progress to date, assess where Pakistan stands relative to its peers, highlight key challenges, and estimate the additional spending required to make substantial progress. The estimates for the additional spending are derived using the IMF SDG costing methodology. We find that to achieve the SDGs in these sectors would require additional annual spending of about 16 percent of GDP in 2030 from the public and private sectors combined.
Fiscal policy has a crucial role in lessening the impact on the most vulnerable households. Governments must balance by ensuring access to energy and food, normalizing fiscal policy after unprecedented support in 2020, and promoting green transformation.
Fiscal policy has a crucial role in lessening the impact on the most vulnerable households. Governments must balance by ensuring access to energy and food, normalizing fiscal policy after unprecedented support in 2020, and promoting green transformation.
Foundational digital public infrastructure (DPI), consisting of unique digital identification, payments system and data exchange layer has the potential to support the transformation of the economy and support inclusive growth. India’s foundational DPI, called India Stack, has been harnessed to foster innovation and competition, expand markets, close gaps in financial inclusion, boost government revenue collection and improve public expenditure efficiency. India’s journey in developing a world-class DPI highlights powerful lessons for other countries embarking on their own digital transformation, in particular a design approach that focuses on shared building blocks and supporting innovation across the ecosystem.
Achieving fiscal consolidation without undermining growth and poverty-reduction efforts is a key policy challenge in many countries. Using India as an illustration, this paper shows how a mix of well-designed taxation and spending policies can help address these challenges. On the tax side, the analysis focuses on increasing consumption taxes on goods with negative consumption externalities. On the spending side, some of the additional revenues from the tax reform are allocated to scaling up key social transfer programs. Substantial additional gains are possible if the increased social transfers can be accompanied by improved targeting.
This paper assesses the additional spending required to make substantial progress towards achieving the SDGs in Pakistan. We focus on critical areas of human (education and health) and physical (electricity, roads, and water and sanitation) capital. For each sector, we document the progress to date, assess where Pakistan stands relative to its peers, highlight key challenges, and estimate the additional spending required to make substantial progress. The estimates for the additional spending are derived using the IMF SDG costing methodology. We find that to achieve the SDGs in these sectors would require additional annual spending of about 16 percent of GDP in 2030 from the public and private sectors combined.
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