The committee said the medium term debt management strategy shows that external debt will be financed through Concessional Finance (26 percent), Semi Concessional Finance (eight percent) and Commercial Finance at four percent. “There is a growing concern on debt sustainability versus revenue generation. DEFICITThe committee wants Parliament to consider amending the Public Finance Management Act to provide for a numerical debt ceiling as opposed to the current scenario where the debt ceiling is pegged on the GDP projections. “The borrowing strategy as contained in the Medium Term Debt Management Strategy (MTDS) 2019 is approved,” BAC said. The committee said the MTDS proposes a borrowing framework of 38 percent external and 62 percent domestic borrowing to finance the national budget deficit.

Source: Daily Nation February 28, 2019 03:11 UTC