Future-Flow Financing as a Sovereign Balance-Sheet Tool
Using predictable user charges to unlock infrastructure capacity without fiscal leakage.
Executive Summary
Future-flow financing allows governments to monetize predictable revenue streams—such as user charges or levies—without incurring direct sovereign debt. When properly structured, these mechanisms preserve fiscal space while accelerating infrastructure delivery.
Core Principle
Future-flow financing monetizes existing economic activity rather than creating new fiscal liabilities.
Structural Characteristics
- Stable, high-visibility revenue streams
- Limited-recourse debt secured only by assigned cashflows
- No call on general government revenues
- Transparent covenant and reserve structures
Fiscal Discipline Standard
Financing must preserve debt sustainability metrics and remain transparent to oversight bodies.
References
- IMF (2022) – Fiscal Risks from PPPs
- World Bank (2019) – Managing Government Exposure to PPPs
- African Development Bank (2021) – Innovative Infrastructure Finance