Currently, almost all central banks are harmoniously co-ordinating with the fisc, both at the policy and operational levels with regard to debt management. There is general agreement that being the fiscal agent creates problems for central bank and separation of debt management function from the central bank would remove the friction.
In a situation of high fiscal deficit and lack of fiscal assurances on its responsibility, separation of the two functions could increase the risk of macro instability. Controlling the fisc, developing financial markets and setting in place institutional and technological infrastructure ideally should precede such separation.