The Debt Sustainability Analysis (DSA) analyses trends and patterns in the State’s public finances during the period 2019-2023 and evaluates the debt sustainability in 2024-2033 (the long term). The analysis highlights recent trends in revenue, expenditure, public debt and the related policies adopted by the State. A debt sustainability assessment is conducted, including scenario and sensitivity analysis, in order to evaluate the prospective performance of the State’s public finance. It is a key component of our fiscal strategy that enables us to evaluate capacity for additional financing through other means including borrowings, grants, etc. Since debt has become a major part of public finance structure, a critical analysis is needed to ascertain the possibility of its existence or otherwise, in the budgeting system and public expenditure. The main objective of the debt strategy is to ensure that the government’s financing needs and payment obligations are met at the lowest possible cost, consistent with a prudent degree of risk. Consequently, for the four Debt Management Strategy (DMS), the analysis calculates costs of carrying public debt, and measures risks associated to macroeconomic and fiscal shocks.
