Debt Optimization to Enhance Fiscal Space
Supporting Arab Governments in optimizing medium- to long- term debt sustainability strategies for financing the Sustainable Development Goals
2022 – Ongoing
ESCWA supports policymakers in the Arab region to improve the efficiency and effectiveness of fiscal policies, enhance fiscal space and optimize debt sustainability strategies.
For most Governments in the Arab region, advancing fiscal policies in line with social development priorities and macro-fiscal sustainability remains a challenge. Arab States are facing increasing debt and debt service burdens, which have been aggravated by protracted crises and global macroeconomic uncertainty. Public budgets struggle to cover essential expenditure on social services as well as to meet commitments on climate action. ESCWA debt and fiscal policy initiatives provide decision-makers with analysis, tools and policy support related to public debt and macro-fiscal policies connected to economic diversification, social development and the Sustainable Development Goals (SDGs).
ESCWA supports policymakers in member States with the tools necessary to improve medium- to long-term debt optimization strategies, ensuring public debt sustainability and macroeconomic stability and improving fiscal space and financing of the SDGs. ESCWA supports more effective debt management practices by improving the technical capacity of member States, helping decision-makers to better understand debt statistics, debt instruments, risk analysis, meeting contingencies and enhancing debt sustainability.
ESCWA informs Government smart spending towards achieving macro-fiscal objectives and the SDGs, supporting budgeting and fiscal policy decisions that rebalance priorities in spending, improve transparency and minimize leakages in public finance management. ESCWA facilitates peer learning regarding social protection and economic policy actions and aims to improve Government readiness to formulate effective policy responses to any future shocks. ESCWA also supports member States in improving fiscal space for climate action and SDG achievements, reducing debt burdens and fiscal pressures.