With interest payment of Rs 18 billion and principal repayment of Rs 64.4 billion, Punjab debt service estimates for FY 2022-23 is Rs 82.4 billion.
As per the budget document made available to the Business Recorder, Punjab’s ratio of debt service to average revenue is 4.6% for FY 2022-23 which is not high and indicates low risk.
A number of indicators are used to monitor and control risks associated with the government’s debt risk indicators and act as a guideline to devise future borrowing strategies.
Highlighting risk indicators, financial experts told this scribe that refinancing/ rollover risk refers to the risk of being either unable to raise new debt to repay the portion of existing debt that is maturing or to raise such debt at a much higher cost. —Agencies