How the debt indicator scaled by a measure of repayment capacity could be constructed?Will this indicator would be applicable at sub-national level also?
The standard measures of debt repayment capacity are: (1) debt-to-GDP; (2) debt-to-exports; and (3) debt-to-revenue. Indicators (1) and (3) should be easily applied to sub-national debt, provided that one has information on sub-national GDP and sub-national revenues. Sub-national GDP can be proxied by the sub-national own revenues and the share of overall fiscal revenues assigned to the sub-national level, The most common challenge of carrying out a sub-national DSAs is making sure that the revenue assignments and expenditure responsibilities are clearly determined.