In response to the COVID-19 pandemic, many countries have reprogrammed their existing budgets, activated contingency reserves, and adopted supplementary budgets. To further mobilize resources and accelerate emergency spending, many countries have also created dedicated COVID-19 extrabudgetary funds (EBFs). This note examines the motivation for setting up such funds and describes a database of more than 40 funds that has been compiled by the World Health Organization (WHO). This note documents the diverse nature of such funds and discusses the risks that poorly designed funds can pose for public financial management (PFM). Finally, it provides guidance on how to improve the design and management of COVID-19 funds to make them efficient, transparent, and accountable.
International Monetary Fund