The government has managed the precarious debt situation with discipline,aggressive control of expenses and increase in tax and non-tax revenues.
In a statement today (Sunday), the finance ministry said government effortshave yielded primary surplus.
The finance ministry said in the current fiscal year, the government hassucceeded in keeping the stock of public debt firmly in check withvirtually no increase.
The statement further said the prudent debt management has includedconverting short term into longer term debt and reducing the cost of theborrowing.
The combined effect of these actions will contain any addition to the debtstock to a minimum.
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The finance ministry clarified that the sole reason forcing the governmentto borrow is the requirement to pay one trillion rupees in interest on pastloans in the period July to October.
This is on top of 4.7 trillion rupees already paid prior to June, bringingthe total amount of interest paid on past loans to a staggering five pointseven trillion rupees.
