Transforming Public Finance Through GovTech

David Amaglobeli, Ruud A. Mooij, Andualem Mengistu, Marian Moszoro, Manabu Nose, Soheib Nunhuck, Sailendra Pattanayak, Lorena Rivero del Paso, Frankosiligi Solomon, Rebecca Sparkman, Hervé Tourpe and Gerardo Uña

No 2023/004, IMF Staff Discussion Notes from International Monetary Fund

Abstract: Digital divide across countries and within countries continues to persist and even increased when the quality of internet connection is considered. The note shows that many governments have not been able to harness the full potential of digitalization. Governments could play important role to facilitate digital adoption by intervening both on supply (investing in infrastructure) and demand side (increase internet affordability). The note also documents significant dividends from digital adoption for revenue collection and spending efficiency, and for outcomes in education, health and social safety nets. The note also emphasizes that digitalization is not a substitute for good governance and that comprehensive reform plans embedded in National Digital Strategies (NDS) combined with legal and institutional reforms are needed to ensure that governments can reap full benefits from digitalization and manage the risks appropriately.

Keywords: GovTech; Digitalization; Inequality; Public Finance; Social Dividends; governance pillar; A. government strategy; assessment tool; A. digital divide; government transfer; staff discussion note SDN2023/004; management information system; government technology; PFM information systems; Caribbean; Middle East; North Africa; Global; Europe; Asia and Pacific (search for similar items in EconPapers)
Pages: 45
Date: 2023-09-07
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