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Social Spending Targets in IMF-Supported Programs in Sub-Saharan AfricaHTML File

Social Spending Targets in IMF-Supported Programs in Sub-Saharan Africa

By Ghislain Afavi, Vaishali Ashtakala, Irena Jankulov Suljagic, Pedro Juca Maciel, Myrto Oikonomou, Johanna Tiedemann, Luc Tucker, Arina Viseth, Frederic Lambert

September 17, 2025

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Ghislain Afavi, Vaishali Ashtakala, Irena Jankulov Suljagic, Pedro Juca Maciel, Myrto Oikonomou, Johanna Tiedemann, Luc Tucker, Arina Viseth, and Frederic Lambert. "Social Spending Targets in IMF-Supported Programs in Sub-Saharan Africa", Departmental Papers 2025, 005 (2025), accessed September 17, 2025, https://doi.org/10.5089/9798229014595.087

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Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper analyzes the significance and effectiveness of social spending targets in IMF-supported programs in Sub-Saharan Africa from 2002 to 2024. It highlights the evolution of these targets, particularly following the 2009 reform of IMF's facilities for low-income countries, reflecting a growing recognition of the importance of safeguarding social expenditures amidst fiscal constraints. The findings reveal that social spending targets in the region represent a significant share of tax revenue, with a favorable completion rate in comparison to other fiscal conditionalities. Despite economic challenges, social spending on health and education has generally been preserved and even increased during IMF-supported programs, with positive outcomes such as improved educational enrollment and reduced infant mortality rates. The study underscores the importance of refining these targets to better serve vulnerable populations while adapting to changing economic conditions.

Subject: Education spending, Expenditure, Health, Health care spending, Total expenditures

Keywords: Education, Education spending, Fiscal policy, Health, Health care spending, IMF Library, IMF team, IMF-supported programs, Middle East and Central Asia, Social protection, Social spending target, Social spending targets, Spending target, Sub-Saharan Africa, Sustainable development goals (SDGs), Target in sub-Saharan Africa, Total expenditures

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