"The problem only arises when interest payments on said debt eat into other budgetary items that sustain the government’s own operations. "

This could only be true if the ability of your government to create money is somehow limited or it has debt denominated in a currency/commodity other than that which it can create at will. Are you still thinking that its debt must be repaid, or that doing so would even be a good idea?

Every dollar created in the non government sector is balanced with a dollar of debt in the government sector as a tracking mechanism. This means that "paying off" that debt via taxation and spending cuts would leave your nation with no dollars in circulation. The limitation to spending is inflation, not the balance sheet or revenue. Revenue (taxes, bonds, etc.) can only reduce the debt as an accounting function with little purpose. It can never be a funding mechanism for spending.

Inflation is much more complex than a simple price increase in a category experiencing supply problems. While even the best economists are not sure exactly what causes it, it isn't the result of money creation unless a government is run by total idiots who would undertake major spending initiatives in the middle of an economic boom because tax revenues were up, placing their government in competition with the private sector for labor and resources. As long as there is slack productivity in the economy it is not a factor to worry about, and certainly not justification for unnecessary misery.