TADAT Talks Episode 5: Fiscal Space Under Pressure

In a timely conversation with Modeste Mopa following the 2026 Spring Meetings, Rodrigo Valdés, Director of the IMF’s Fiscal Affairs Department, explores the growing fiscal pressures countries are facing, as rising development needs, tighter financing conditions, and high debt levels continue to constrain fiscal space. He outlines how governments can create room for action through stronger domestic revenue mobilization, improved expenditure prioritization, and well-designed fiscal adjustment strategies. The discussion highlights the IMF’s role in actively supporting member countries as they navigate this challenging environment, through policy advice, capacity development, and analytical and diagnostic tools. Emphasis is placed on the importance of sustained political commitment, durable tax administration reforms, and the use of practical instruments such as the Tax Administration Diagnostic Assessment Tool to strengthen institutions, safeguard vulnerable populations, and enhance resilience to future shocks.