The institutions administering the expenditure programmes should also have sufficient capacity to manage them - including the capacity to bear the financial risks some forms of support can involve (e.g. loans and loan guarantees). Neither debt nor, contingent and implicit liabilities (e.g. loan guarantees) should be incurred without explicit and prior approval from fiscal authorities. For example, subsidies to water-efficient irrigation equipment can increase the irrigated area, leading inter alia to increased water shortage and pollution problems.