Parliamentary Oversight of Public Debt
What Is Public Debt?
Public debt refers to the financial obligations—both domestic and external—owed by a government. Prudent debt management centres on reducing borrowing costs over time, balancing risk, and ensuring fiscal sustainability. This involves robust legal frameworks, institutional capacity, inter-agency coordination, and comprehensive strategies backed by reliable data. Well-managed debt supports macroeconomic stability, protects fiscal space for public services, and preserves creditworthiness—especially vital in low- and middle-income countries facing growing debt pressures.
Why Oversight Matters
High public debt can limit funding for essential services and force austerity measures that often disproportionately impact vulnerable groups, such as women and girls. Oversight helps ensure debt levels and composition remain manageable, protecting both fiscal health and development needs.
Parliament’s Role
- Legislate: Enact laws guiding debt and its management.
- Oversee: Monitor the full budget cycle—from planning and approval to execution and audit.
- Engage: Hold debates on debt issues, demand transparency, and summon expert testimony through committee hearings.
Civil Society’s Role
- Form Debt Justice Alliances: Unite CSOs under a shared vision to strengthen advocacy and influence debt practices.
- Monitor Debt & Fiscal Targets: Evaluate national and international goals, ensuring policies align with development priorities.
- Advocate for Debt Relief: Promote measures that ease debt burdens to create fiscal space for key public services.
- Improve Transparency: Push for complete and timely disclosure of debt data to enhance public accountability.
Additionally, Nexus PFM’s founder, Geoff Dubrow, uses podcast excerpts as training materials to illustrate how civil society can engage in debt oversight.
Nexus PFM Services
Supporting Parliament
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Regional Conferences & Workshops: Share best practices in debt management and fiscal transparency.
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Capacity Building: Train parliamentary committees and staff to effectively oversee public debt.
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Strategy Development: Collaborate to design long-term plans that engage oversight bodies in shaping sound debt policies.
Supporting Civil Society
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Open Budget & Transparency Workshops: Educate CSOs on entry points within the budget process and relevant debt indicators.
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CSO Empowerment Workshops: Strengthen CSO abilities to form alliances, monitor debt, advocate for relief, and champion transparency.
Publications & Projects
Publications
- The Role of Parliament in Public Debt Management: Weathering the COVID-19 Crisis and Beyond (Westminster Foundation for Democracy, June 2020)
- Debt Management Legal Frameworks (NDI & WFD — forthcoming)
- Role of Parliaments in Oversight of Public Debt in Public Debt Management (NDI & WFD — forthcoming)
- Debt Decision Making in Emergency Contexts (NDI & WFD — forthcoming)
- PDMAT 2.0: Public Debt Management Assessment Tool
Notable Projects
- Public Debt Management Assessment Tool (PDMAT 1.0/2.0): Developed and refined the tool, complete with updated indicators and guidance. Applied across Nigeria, Sierra Leone, Albania, Montenegro, Uganda, and Kenya.
- Conducted public debt assessments and capacity-building workshops using PDMAT 2.0 in Sierra Leone and Nigeria.
- Collaborated on a DeMPA review and PDMAT assessment in Albania via a World Bank-led mission.
- Evaluated Uganda’s debt management system using both DeMPA and PDMAT, updating a previous 2018 assessment.
