The near-term growth and inflation outlook remains generally favorable, but
the fiscal balance and external position have deteriorated substantially. Adjustment
from high dependency on oil revenue and large infrastructure and social development
needs pose a significant challenge to a fragile state with weak institutional capacity.
Rapid frontloading of public investment risks substantial waste of resources through
investment inefficiency. This underscores the need to shift away from frontloading of
capital spending, improve public investment management system and ensure
sufficient social and economic returns from such investment to safeguard fiscal
sustainability.
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