Understanding the Challenge of Public Asset Strains
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Reliance On Government Budget Dependence on public funding limits flexibility and strains fiscal resources.
In today’s fast changing world, government entities face growing pressure in identifying, funding, developing, and maintaining assets as part of their public service and projects delivery mission. This pressure is amplified by mounting fiscal constraints, global public debt is projected to rise by 2.8 percentage points in 2025, pushing debt levels above 95% of GDP, with expectations of nearing 100% by the end of the decade 1 . Such mounting debt burdens limit fiscal flexibility, compelling governments to explore alternative models. While public organizations often own vast and valuable physical, digital, and intangible assets, from transport hubs and government buildings to public spaces, data, and infrastructure, many of these remain underutilized, detached from broader development strategies, or simply seen as cost centers rather than potential value driver. Asset delivery and management present persistent challenges for the public sector across many economies. These challenges become even more pronounced in countries undergoing large-scale reform and transformation such as Saudi Arabia, where Vision 2030 is reshaping the national landscape by reducing reliance on oil and steering toward a more diversified, sustainable economy.
Service Gaps Inconsistent service delivery reduces satisfaction and limits impact.
Understanding the Challenge of Public Asset Strains
Strategy & Execution Disconnect Misalignment between strategy and implementation hinders execution and limits long-term impact. Governance & Innovation Barriers Strict oversight and regulatory complexity constrain innovation in technology, delivery models, and partnerships. Institutional Constraints Restricted autonomy affects agility and delays decision-making. Bureaucracy & Time Constraints Prolonged and complex procedures delay execution and lead to outdated strategies that fall behind fast- changing market conditions.
These issues go beyond mere operational challenges; they pose a significant risk of missed opportunities.
1) Rising Global Debt Requires Countries to Put Their Fiscal House in Order, International Monetary Fund. April 2025. https://www.imf.org
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