Lastly, the study examines the long run association among surplus-to-GDP ratio and debt-to-GDP ratio
through Johansson co integration technique to confirm sustainability. Based on the obtained results, it is
concluded that surpluses and debt are co integrated. The results suggest the existence of long run association
among the two series. Furthermore, VECM is applied for the investigation of stability of long run association
among surplus and debt. The results confirm the stability of co integration relationship. So, it is concluded
that variables, surplus-to-GDP and debt-to-GDP are co integrated and suggest that fiscal policy reacts to debt
or public liabilities as needed and primary surpluses are likely to rise in order to assure inter temporal budget
constraint.