gradually diversify. At the same time, elevated financial sector vulnerabilities, development spending needs, and governance weaknesses pose challenges for further advancing sustainable growth and development. Policy Priorities. Safeguarding fiscal sustainability. Spending pressures should be contained and priority given to growth-enhancing infrastructure and development spending. Sustaining revenues will require modernizing revenue administration and policies to improve efficiency and equity. Managing risks from contingent liabilities calls for limiting public
other agencies suggest that improving education, health, and water and sanitation services would cost much more in remote areas due to higher project costs. In this respect, the result could be interpreted as a relatively conservative estimate of total development spending needs. 6 In the dynamic financing model, annual SDG investment is endogenously determined by overall deficit, revenue, and non-SDG expenditure envelops that are exogenously set in line with the staff’s macroeconomic framework. 7 For example, the Ministry of Finance of Bangladesh
sources for meeting mounting development spending needs . Fiscal space needs to be expanded through improved revenue administration and tax policy measures to offset the projected decline in logging revenues, while maximizing access to concessional donor financing. Domestic revenue mobilization should be an essential part of the agenda, particularly in developing Asia, including Solomon Islands, as tax effort appears to be relatively low compared to tax capacity ( Benedek et al., 2021 ). Compared with other PICs, Solomon Islands has benefited from a mix of grant and
countries have already experienced a wave of private sector participation in infrastructure in the 1990s. Results were disappointing, which undermined public confidence and support, and the experiment was later reversed. Lessons have been learned from this episode to make private sector delivery of infrastructure services more sustainable, both economically and socially. How much could the private sector contribute to meeting development spending needs? Historical evidence shows that the private sector takes increasing responsibilities in the provision and financing of