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Future of health financing: The expected economic contraction due to COVID-19 in developing economies is sufficient to put considerable pressure on budgetary space for health spending, which in many settings is already constrained.

The Covid-19 pandemic has led to large budget gaps of more than $8 trillion worldwide from higher spending requirements and reduced tax revenue. Sooner or later, policy makers must consider revenue sources to close these budget gaps and avoid debt

Many prominent people have advocated that the IMF undertake an “SDR allocation” to assist countries in dealing with the global financial crisis brought about by the COVID-19 pandemic. To most experts, the idea seems like a no-brainer, but some IMF shareholders have voiced concerns, particularly the United States, which has a controlling vote in the matter. If IMF shareholders show some leadership and bureaucratic flexibility, there are ways to allay the American government’s concerns and quickly get liquidity in the hands of countries who desperately need it.