Debt sustainability analysis carried out by the Ministry of Finance, the IMF and the World Bank have not found any significant risk posed by our debt levels. To demonstrate this commitment of reducing the domestic debt, the government will reduce its domestic borrowing from 5.1 percent of GDP in 2009/10 to 3.8% in 2010/11.
This fiscal space, as was demonstrated during the drought and global financial crises is important for propelling growth even in times of crisis – the fiscal stimulus would not have been possible – Gives room for monetary policy to perform. 6.