Improved coordination between central government and municipalities on co-financing infrastructure projects represents a pragmatic response to fiscal constraints. Shared funding models allow projects to proceed that would otherwise be delayed or downsized.
This alignment improves capital allocation efficiency and reduces duplication. However, it also requires strong project selection and execution discipline to avoid spreading limited resources too thinly.
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If managed effectively, co-financing can accelerate infrastructure delivery and support balanced regional development without destabilising public finances.
