These challenges also highlight the need for countries to strengthen debt management practices and improve transparency, which is fundamental to sustainable financing. Addressing these challenges would require countries to make tough fiscal choices to prevent debt burdens from becoming unsustainable. Fast-growing countries that face elevated debt vulnerabilities would also need to prioritise rebuilding buffers, including through structural reforms and improvement in fiscal frameworks.
There is wide consensus that countries need to raise more domestic revenue to make debt financing more sustainable. There also needs to be a greater focus on improving the efficiency of public spending in such a way that it helps to improve economic growth.