In addition the continued decline of the fiscal account will affect both debt sustainability and external balances ("Monetary Policy Decision").

As it pertains to medium term fiscal sustainability which must be present to achieve necessary overall macroeconomic stability, the tax-GDP ratio must be increased ("Monetary Policy Decision"). Additionally government expenditures must decrease ("Monetary Policy Decision"). The article also reports that the revenue deficit, which represents the difference between total revenues and current expenditure, has to be reduced to zero as established by the Fiscal Responsibility and Debt Limitation (FRDL) Act signed into law in 2005 ("Monetary Policy Decision"). In fiscal year 2009 the revenue deficit was 1.5% of GDP and it is anticipated that the revenue deficit 2% of the expected GDP in FY10 ("Monetary Policy Decision"). The article explains that the reduction of development expenditures may be successful in providing immediate relief but at the same time such reductions...
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