text: close study of the impact of measures in countries that have acopted such measures instructive. resolved in the light economic environment, possible. However, a this area in all the would undoubtedly be 47. One policy issue that needs to be e~aminec 1n the proper perspective is the problem of increasing fiscal imbalance and in­ stablity. It has been pointed out that government revenues are not growing as fast as eY.penditure, and are subject to in­ stability as a result cf over-cependence on international trade. In the past African rcvernments have grappled with the twin problems of how tc close the fiscal rap and hew to stabilize their revenue. 48. Since the variables deteriTininr their revenue positions are beth domestic anr e:xternal, it seems that little can be done at least in the short run a~ far as stablization is concerned. As a lonr-run solution the domestic revenue base might be built up to shift dependence frcm the eYternal to the internql. Even here, instability is likely to he minimized rather than eliminated. 107 E/ECA /CM. 9/5 49. The prospect of closing the fiscal gap with the present economic structure of non-oi 1-e xporting African countries is very dim. The governments of developinF Africa have shouldered responsibilities which each year further exceed their capacity. These responsibilities, which are economic anci political impera­ tively, make a ouick anc easy solution very remote. Notes 1/ For the calculation of averages see foot-notes~~ and£/ to table .V.A .1. ~/ In 1981, the Ugandan Government introduced wide-ranging measures to restore its revenue base, which haa been seriously eroded over the previous 10 years. These measures included changing import duties from specific to ac valorem rates, and rev1s1ng the effective rates of sales tax and excise duties on a 
analysis: The text discusses the fiscal imbalance and instability faced by African countries, and the challenges of closing the fiscal gap. It highlights the need to build up the domestic revenue base and shift dependence from external to internal sources. The text also mentions the introduction of measures to restore the revenue base in Uganda. These issues are primarily related to economic development and governance.