Funding capacity

Definition

Stability and sustainability of the government’s fiscal management.

What Does Good Look Like?

Fiscal sustainability that allows for the allocation of infrastructure expenditure by governments.

Best Practice Guidance:

Public Investment Management Assessment (IMF)
Making Public Investment More Efficient (IMF)
PPP Fiscal Risk Assessment Model (IMF)

Top Performers

Rank Country

Score /100

1 -

Denmark

84.2

1 -

Denmark

84.2

84.2/100

2 -

Qatar

84.1

2 -

Qatar

84.1

84.1/100

3 -

Singapore

84.1

3 -

Singapore

84.1

84.1/100

4 8

Ireland

83.7

4 8

Ireland

83.7

83.7/100

5 1

United States

83.6

5 1

United States

83.6

83.6/100

Go To Full Ranking

Guidance

Metric

Best Performer

Source

Best Practice

Summary credit rating

Capability of the government to borrow money, based on a range of risks and factors, such as existing government debt (debt service ratio) and political stability.

Shows the government's ability to borrow (cheaply) for infrastructure spending. Governments with higher credit ratings can borrow at lower cost to invest in infrastructure, reducing project costs. A good credit rating (AAA) allows governments to be able to have strong access to markets and lower costs of debt. It indicates the risk level of the investing environment of a country and is used by investors when looking to invest in a country.

48.2%

Summary Credit Rating, Trading Economics (2019)

Sovereign Credit Ratings Methodology (S&P Global)

GDP per capita

Breaks down a country's GDP per person. It shows how much economic production value can be attributed to each individual citizen.

Indicator of the production per person, which is a proxy of how much taxpayers can fund infrastructure. It also indicates users’ ability to pay for infrastructure services that’s funded through user-pays methods.

41.8%

Ireland

World Economic Outlook, IMF (2019)

Long term GDP growth trend

Trend of GDP growth, including long-term baseline projections.

Indicator of economic growth and shows long term ability to pay for infrastructure. High long term GDP growth allows countries to borrow and build more infrastructure now, on expectation they need it to enable growth and will be able to pay for it through said growth.

Ethiopia

World Economic Outlook, IMF (2019)

Gross government debt

Gross debt consists of all liabilities that require payment or payments of interest and/or principal by the government to creditors at a date or dates in the future.

Governments have to borrow money to fund cyclical revenue shortfalls and finance large infrastructure projects. This metric provides an indicator of how much money the government has borrowed and whether it can afford higher debt levels to fund infrastructure.

Russia

World Economic Outlook, IMF (2019)

Expenditure Control : Key Features, Stages, and Actors (IMF)

Best performer

Best practice

Summary credit rating

Summary Credit Rating, Trading Economics (2019)

Description

Capability of the government to borrow money, based on a range of risks and factors, such as existing government debt (debt service ratio) and political stability.

Metric Importance

Weighting
(% Of Driver)

48.2%