For instance, if ambitious social and infrastructure spending results in large positive spillovers into the economy, the debt to GDP ratio could eventually fall below the baseline case (ESCAP, 2013). The crowding out effect refers to a situation when higher public expenditures, caused by increasing interest rates, lead to a reduction in private investment spending such that it dampens the initial increase in total investment spending. Another consideration is the pace of investment (front-loading or gradual), with some empirical studies supporting the latter based on the assumption that this would allow time for improving efficiency (Ghazanchyan and others, 2017).