This paper draws on the IMF staff projections for the July 2009 IMF's World Economic Outlook Update and supplements analysis for the surveillance note for the Meeting of G-20 Deputies in Basel on June 27. The paper provides an update of the fiscal impact and policy response to the crisis. The paper highlights that the crisis is having a substantial impact on fiscal positions in the G-20 countries. Overall deficits are projected to increase by 5.5 percentage points of GDP in 2009 and 2010, with respect to 2007 precrisis levels and excluding losses from financial sector support.