ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Changed Priority

Changed Priority? WITH the ever-present danger of being forced to renege on our debt servicing liabilities, the prospect of further, and very much larger, resort to the IMF is coming closer by the day. The groundwork is being done already. The new government's first task will perhaps be to formally put its stamp of approval on the memorandum of understanding that is right now being worked out by our bureaucrats with their counterparts in the Fund. On one issue the present caretaker government seems to have made a firm commitment already, which is that the fiscal deficit of the Centre for 1991-92 will be brought down to 6.5 per cent of GDP from the level of 8.5 per cent in 1990-91. The commitment does not stop there. The fiscal deficit is to be reduced further in the coming three years to 3-4 per cent.

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