Annual Report 1995-96

Abstract

The Government initiated a set of stabilisation-cum- structural adjustment measures in July, 1991 which are now referred to as the "economic reforms". The key objective of the stabilisation policy (which included reduction in fiscal deficit, containment of growth in money supply and an exchange rate adjustment) was to bring growth of aggregate demand more in line with the long term growth path of the economy and hence reduce the domestic inflation rate and improve the balance of payments situation.