Economics · Economy
Contingent liabilities arising from Public-Private Partnership (PPP) projects pose a significant fiscal risk to governments because they:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Are immediately and fully reflected in the current year's fiscal deficit
- 2Remain off-budget under normal conditions but may crystallize into actual liabilities later✓
- 3Directly reduce the ongoing capital expenditure allocation of the state
- 4Completely eliminate the need for providing any sovereign guarantees
Correct answer
Remain off-budget under normal conditions but may crystallize into actual liabilities later
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