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How to budget for COVID-19 response?

The COVID-19 pandemic requires sufficient public funding to ensure a comprehensive response. Reprioritizing public spending toward bolstering the economy and the health system requires timely action from government leaders and a supportive public finance environment. Highly-affected countries have taken various approaches to budgetary allocation, depending on their public financial management (PFM) and regulatory systems. Adjustments are required on the revenue side of budgets (e.g. loans) to account for these new economic and fiscal constraints. Quick decision-making on the expenditure side is also needed. That will be the focus of this blog. Every country must develop specific processes for allocating budget funds to the response. To inform budgetary response in countries where the pandemic may spread in the near future, a summary of observed budgetary practices in some highly-affected countries is provided below, with the aim of informing other countries about responses to three key questions:

1) What are the immediate spending actions that can be taken with existing budgets?

2) How to secure budget for COVID-19 response through revisions in finance laws?

3) What can be done to accelerate budget execution and funds release to the frontlines?

Please click here for the full article.


Authors: Hélène Barroy, Ding Wang, Claudia Pescetto, Joseph Kutzin

The authors acknowledge inputs received from Tomas Roubal (WHO Western Pacific Regional Office), Tsolmongerel Tsilaajav (WHO South East Regional Office), and Agnès Soucat (WHO Headquarters).

Expert: We need a global coordinated response to COVID-19

A stock trader puts his hand to his forehead in worry

Without coordination within and across countries, the novel coronavirus will endlessly re-emerge, with devastating consequences for public health and the global economy, an economist warns.

Just like you can’t treat a termite infestation by fumigating only one room in a house, you can’t control the coronavirus pandemic by targeting interventions to a specific region or country, says Matthew Jackson, professor of economics at Stanford University’s Humanities of Sciences and author of The Human Network: How Your Social Position Determines Your Power, Beliefs, and Behaviors (PenguinRandomHouse, 2020).

Instead, managing the crisis requires a comprehensive and coordinated response between states within the US and across countries and continents, otherwise, the problem will continue to surge at a greater cost to the global economy and public health.

Here, Jackson, whose scholarship examines disease contagion and production networks, as well as financial contagion—the spread of economic crises across regions—and systemic risk, describes how the coronavirus pandemic demonstrates how each of these areas are central and intertwined. He also explains how, in an era of global networks, addressing the outbreak requires a proactive response that considers these distinct and dependent areas:

The post Expert: We need a global coordinated response to COVID-19 appeared first on Futurity.

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