This Policy Brief was first published in https://t20ind.org
Private participation in infrastructure projects is showing signs of recovery after the COVID-19 pandemic. The overall trend, however, has remained stagnant over the last eight years. This means that the investment gap in infrastructure is expected to continue to widen. The figure is predicted to be even larger when the infrastructure requirements pertaining to the Sustainable Development Goals are taken into consideration. The public sector alone is unable to fill the gap. Therefore, this policy brief proposes a system that shares the spillover tax between the government and the investors and operators of the infrastructure to incentivise private-sector participation. This will increase the confidence of private- sector investors and the feasibility of infrastructure projects.
