The Financing of Infrastructures

Abstract

The paper argues that the need to keep up a high level of investment in infrastructures in order to overcome a long standing short fall in these and assure both conditions for greater competivity and the standard of living when coupled with a demanding policy bent on cutting back the balance of payments deficit so as to meet the calls of European Unity has made necessary a search for new financing sources and formulas outside the limits of the hitherto traditional appeal to the National Exchequer. The paper attempts to give an overview of the various ways and means by which infrastructures could be funded ranging from the classical to extra budgetary formulae founded upon the proper infrastructures capacity to generate its own financing on through to various mixed options in which both public and private funds might be brought into play, all of which, however, requiring a most painstaking administrative formulation, planning and control. Bearing in mind an analysis of all such possible ways and means when drawing up the financial framework for the PDI, other new sources and form of financing, apart from those offered by the Budget, have been taken into consideration as these might well complement the latter and, were the need to arise, assure funding to allow deadlines to be met in projects of prime necessity.