Public debt

The government could raise an additional USD 76 billion by sustaining its current relatively conservative debt-to-ratio levels around 20 per cent of GDP over the 2014–18 period. This assumes that all additional debt incurred is used solely to finance infrastructure projects. Several countries (e.g., India, Kenya and the United States) have created infrastructure bonds as a successful means of focusing debt financing on infrastructure projects. This approach provides a flexible solution which can allow a government to diversify its sources of financing, while also serving as a good ‘communication tool’ to the general population on the government’s infrastructure priorities. However, given limitations on how much the government can borrow, this approach will only be able to provide a limited amount of the financing required for a large investment programme like the NIIMP. Public debt also requires extensive documentation.