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

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VIP SECURITY-Waste of Public Funds

an ay aver growth of 128.2 percent per annum in the previous two years. The tenuousness of the reserves position becomes clear when it is considered that even if non-POL imports had risen by 20 percent in the first 10 months of 1996-97, the additional foreign exchange outgo would have been more than $5.5 bn, wiping out the entire increase in reserves in the whole year. Third, the likely decline in the current account deficit from 1.7 per cent of GDP to 1.3 percent in 1996-97 is the result of a fall of $1.5 bn in the deficit in the merchandise balance from $9 bn to $7.5 bn. Net invisible receipts, on the other hand, are likely to be the same in the two years, that is, about $3.5 bn, though private inward remittances are likely to have gone up from about $7.5 bn in 1995-96 to $8.5 bn in 1996-97. This rise in private remittances, which were just $2.78 bn in 1992-93, has made a major contribution to the improvement of the balance of payments and the build-up of reserves.

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