The weakening of the global recovery and concerns about the ability of policymakers to provide an adequate and swift policy response have clouded economic prospects. As a result, risks to the global economy (April 2016 World Economic Outlook) and financial systems (April 2016 Global Financial Stability Report) have substantially increased. In this difficult environment, fiscal policies must be prepared to respond promptly to support growth and reduce vulnerabilities. In emerging market and developing economies, tighter and more volatile global financial conditions could significantly increase the interest bill at a time when gross financing needs are rising. The weak economic outlook also raises the likelihood that contingent liabilities will materialize. Finally, the electoral calendar or political gridlock could complicate policy implementation or discourage bold policy action in 2016 in a number of major economies. Hence, the outlook remains very uncertain and the likelihood of a protracted lower-growth scenario has increased. In this environment of high risks, a comprehensive policy response is urgently needed to improve growth prospects and build resilience.[…]