Governments in Asia and the Pacific and globally have deployed unprecedented fiscal policy responses to tackle the immediate impacts of the COVID-19-induced recession. At the same time, it is critical that governments develop fiscal strategies for advancing recovery that promotes more resilient, inclusive, and green economies.

The Sixth Annual Tokyo Fiscal Forum is co-organized by ADBI, the International Monetary Fund, and Ministry of Finance of Japan’s Policy Research Institute and will discuss challenges in designing COVID-19 era fiscal strategies. The focus will be on how to tailor fiscal strategies to different phases of reopening, the role public investment can play in creating green and inclusive growth, and how to appropriately balance support for recovery and ensuring debt sustainability.

Presentations examined fiscal risk management, including spending and revenue measures; “below-the-line” support such as guarantees and loans to households and businesses; and quasi-fiscal activities through state-owned enterprises. The forum also addressed countries’ readiness to manage these risks and ways to strengthen fiscal institutions capacity to mitigate them and related challenges.