Does an SDR allocation impose a financial burden?

The idea that an SDR allocation imposes a financial burden arises from potential exchanges of SDRs for U.S. dollars. If countries wish to sell their SDRs to the United States in exchange for dollars, Treasury would exchange SDRs for dollars held in the Exchange Stabilization Fund (ESF).

How does Treasury support an SDR allocation?

As part of our support for an SDR allocation, Treasury is working with the IMF and other member countries to maximize the benefits and limit the possible downsides of an allocation by enhancing transparency, accountability, and equitable burden sharing.

Is a medium-term budget framework a prerequisite for performance-based budgeting?

although the latter should not be thought of as a prerequisite for the former. Like performance-based budgeting, a medium-term budget framework aims to improve expenditure prioritization (although performance-based budgeting is much more focused on managing the efficiency and effectiveness of public expenditure).