Beyond that, the “quality” of public finances is very important for growth. It is essential to increase the efficiency of public spending in order to facilitate the redirection of public expenditure towards physical and human capital accumulation with a view to enhancing productivity.
As the economy recovers, investment demand and the need for credit will pick up which would boost banks’ performance and, to a great extent, address the issues of asset quality and internal generation of capital. ii)  Government’s focus on infrastructure  24.