The United Nations Conference's report on Trade and Development, UNCTAD, has urged the developing countries to preserve and enlarge their fiscal space. This the report says will help them to protect themselves from the consequences of fiscal tightening and has suggested for promoting growth to deal with public debt in the wake of the consequences of fiscal tightening.The UNCTAD's -2011 report was released at a function in New Delhi on Tuesday. It says, the challenge for highly indebted developed countries is how to grow out of debt with growth enhancing fiscal, monetary and income policies.The report suggests that GDP growth combined with low interest rates is the best strategy for reducing public debt ratios over time and priority should also be given to removing the balance of payments.