Debt Policies, Budgeting and Financial Management Systems, and the Path to Sustainable Public Debt: The African Case

ABSTRACT This study analyzes the relationship between cross‐country public debt policies, budgetary and financial management systems, as a path to sustainable public debt in African countries. The generalized method of moments estimation technique is used to analyze annual cross‐country data from 2005 to 2022. The study finds that improvements in debt management strategies and budget and financial management practices are associated with a reduction in debt per GDP in African countries. It is recommended that African states comprehensively institutionalize, implement, and enforce the public debt, budgetary, and financial management frameworks and practices to ensure sustainable public debt.