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IMF country teams have become increasingly engaged on health spending issues in surveillance and program work, and more so since the COVID-19 pandemic. The primary objectives of health spending are to improve health outcomes and provide protection to households against high financial costs of health care. The Fund’s engagement on health spending issues is guided by an assessment of its macro-criticality, with the scope and purpose of engagement varying across countries and depending on whether it occurs in surveillance or program contexts. This technical note discusses how to assess the macro-criticality of health spending and reviews appropriate policy responses. The design and implementation of macro-critical health reforms often require specific sectoral knowledge and experience. Thus, this note emphasizes the importance of collaborating with development partners on health policy issues.

Analysis of Health Care Markets --- Expenditure --- Expenditures, Public --- Fiscal and Monetary Policy in Development --- Health and Inequality --- Health care reform --- Health care spending --- Health care --- Health economics --- Health Policy --- Health systems & services --- Health --- Health: General --- Health: Government Policy --- International Taxation --- Medical care --- Monetary economics --- National Government Expenditures and Health --- National Government Expenditures and Related Policies: General --- National Government Expenditures and Welfare Programs --- Public finance & taxation --- Public Finance --- Public Health --- Regulation --- Revenue administration --- Structure, Scope, and Performance of Government --- Tax administration and procedure --- Tax Evasion and Avoidance

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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.

Automation --- Currency crises --- Diffusion Processes --- Economic & financial crises & disasters --- Economic sectors --- Economics of specific sectors --- Economics --- Economics: General --- Education and Inequality --- Finance, Public --- Financial crises --- Foreign Exchange --- General issues --- Government Policy --- Health and Inequality --- Industries: Information Technololgy --- Informal Economy --- Informal sector --- Information technology industries --- Information technology --- Innovation --- Intellectual Property Rights: General --- Labor Force and Employment, Size, and Structure --- Macroeconomics --- National Government Expenditures and Related Policies: Infrastructures --- Other Public Investment and Capital Stock --- Provision and Effects of Welfare Program --- Public Administration --- Public finance & taxation --- Public Finance --- Public financial management (PFM) --- Public Sector Accounting and Audits --- Research and Development --- Revenue administration --- Revenue --- Taxation, Subsidies, and Revenue: General --- Technological Change --- Technological Change: Choices and Consequences --- Technology --- Underground Econom