New Delhi, March 11 -- The government has pre-paid a large chunk of its high-cost debt this financial year with a favourable effect to the borrowing cost of Central and state governments, finance minister Nirmala Sitharaman said on Tuesday.

Replying to the debate in Lok Sabha on the second 'supplementary demands for grants' for FY25 presented on Monday, Sitharaman said that the request to Parliament involved what is called 'technical supplementary demands' of over Rs.6.27 trillion.

These are spending plans financed by savings or extra revenue receipts and do not entail net cash outgo to the exchequer.

The minister said that of this, Rs.5.54 trillion went for re-payment of debt. That included a buy-back of over Rs.85,150 crore of govern...