additional pandemicspending and further fuel revenue loss.
Program performance . Performance under the E CF-supported program was broadly satisfactory, despite the difficult pandemic and electoral environments. All but one quantitative performance criteria (QPCs) as well as all but one indicative target (ITs) at end -December 2021 were met. Of the four structural benchmarks (SBs) for end-December 2021, two were met and the remaining two were satisfied with delays.
Program objectives in 2022 . The fiscal framework in 2022 aims to ensure an appropriate balance between
COVID-19 changed consumers’ spending patterns, making the CPI weights suddenly obsolete. In most regions, adjusting the CPI weights to account for the changes in spending patterns increases the estimate of inflation over the early months of the pandemic. Under-weighting of rising food prices and over-weighting of falling transport prices are the main causes of the underestimation of inflation. Updated CPI weights should be developed as soon as is feasible, but flux in spending patterns during the pandemic complicates the development as quickly as 2021 of weights that represent post-pandemic spending patterns.
Spain, for example, credit card data from Carvalho et al. (2020) show that the types of spending that fell sharply in the first phase of the lockdown later rebounded ( Figure 2 ). Furthermore, in the longer run, expenditure patterns could partially return to their pre-pandemic configuration. Development of CPI weights that reflect post-pandemicspending patterns will be difficult while spending patterns are still in flux.
Figure 2. Credit Card Spending Patterns during Lockdown Phases in Spain
Source: Carvalho et al. 2020 .
IV. Estimating the Effect
transparent public financial management, which they see as paramount to ensure that the funds are spent as intended. They have published key information on the main contracts procured in the context of their fight against the pandemic and are committed to undergo ex-post audits of the pandemicspending.
“Once conditions permit, the authorities are committed to reverting to their medium-term fiscal path, by maintaining the fiscal deficit below the regional ceiling. Raising domestic revenue closer to the regional target should remain a primary fiscal objective, as this
for Burkina Faso over the medium term. Consequently, a gradual return of the fiscal deficit to the regional target of 3 percent of GDP (2024 – one year later than the regional goal) is important and will preserve policy space to balance the growth impact and the fiscal adjustments related to shocks associated with security and pandemicspending needs.
“The authorities should make efforts to promptly adopt and implement the necessary reforms to put the wage bill on a sustainable path.”
IMF Lending Tracker (emergency financing request
International Monetary Fund. Middle East and Central Asia Dept.
, materialize, the recovery could falter and financing needs increase.
“The fiscal deficit is widening in 2020 to accommodate needed pandemicspending. Once the recovery gets underway, the program will aim to reverse course and support the gradual shift toward self-reliance. With grants projected to decline, domestic revenue mobilization, underpinned by tax and customs administration reforms, will be key to protect development spending and create space for a stronger social safety net.
“Monetary policy rightly focuses on price stability with exchange rate flexibility. The