THE new Managing Director of the International Monetary Fund (IMF), Ms Kristalina Georgieva, urged taking measures to enhance revenue mobilization by targeting corruption and utilizing digital technologies. In her maiden speech delivered on Oct 08, 2019, Ms Georgieva stated that one way to create more fiscal space is through domestic revenue mobilization. Reducing corruption and utilizing digital tools in tax collection can unlock resources and fuel new investments in people. It can also help countries reach the 2030 Sustainable Development Goals.

Turning to climate change, she advocated carbon taxes to cope with emerging crisis. She pointed out that New research in IMF's upcoming ‘Fiscal Monitor' Report confirms that carbon taxes can be one of the most powerful and efficient tools. But the key here is to change tax systems, not simply add a new tax. She felt that additional revenues could be used to cut taxes elsewhere and fund assistance to millions of affected households. These new resources could also support investments in the clean energy infrastructure that would help the planet heal.

According to Ms Georgieva, dealing with climate change requires not only mitigating damage, but also adapting for the future. Adaptation is about many things, but it is mostly about pricing risk and providing incentives for investment, including in new technologies. She cited the case of Sweden which introduced a carbon tax in 1991. With this, low and middle-income households received higher transfers and tax cuts to help offset higher energy costs. That policy shift has been instrumental in reducing Sweden's carbon emissions by 25 percent since 1995, while its economy has grown by over 75 percent.