Description

Digitalization in the Middle East and Central Asia is increasingly associated with improved fiscal outcomes. Adoption of digital tools has led to notable gains in revenue mobilization, administrative efficiency, and reductions in poverty and inequality through improved social assistance delivery. Despite these advances, the full benefits of digitalization remain unrealized. Progress varies widely due to differences in digital preparedness, institutional capacity, legal frameworks, and financial resources—bottlenecks that can slow reforms and limit reach. Furthermore, as digital agendas expand, new risks emerge, including exclusion of vulnerable groups, data security threats, and higher enforcement costs. Addressing these challenges requires country-specific strategies.

More publications in this series: IMF Notes