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.