text: nal financial position of C.evelcpinpAfrica was not very comfort­ able in 1981 ano 1982. Domestically the fiscal pap has in­ creased, as a result cf ever increasinr eYpenditure in the face of stae:nant revenue, or at best a slurrish increase. On the eY­ ternal front, the current account deficit in 1981 anc 1982 was the hifhest ever. 29. Adjustments were vi tal to rectify the domestic fiscal im­ balance and the eYtern&l ceficit. However, while the enc of res­ torinf stability by cuttinr down arrrerate demand was clear, the means were expected tc prove too costly, at least in social terms. As a result efforts to brinf about the arjustment were two-pronpeo the search fer adCitional resources. from outside accompaniec the implementation of domestic policies to curb demand. While the search for ways tc achieve ecuilibrium at min­ imum cost was universal, there were differences in the depree to which one or both prcnres were applieo, and in the eYtent of their success. 30. The effort to minimize if not eliminate the fiscal rap was very difficult. The recession in developed countries crastically reduced revenue from eyternal tr&de. With the lull in the domes­ tic eccnC'r:Jic Rctivity, rovernrrents could not increase revenue from the alreaoy eYhaustec taY base to match their burpeoning eY­ penditure. They were therefore oblired to search fer supplements to current inc orne to pay f cr the roods an cl services they pur­ chase d. 104 E/ECA /CM. 9/5 31. Two avenues commonly pursued in an endeavour to achieve domestic eauilibrium were to decrease expenditure and to increase borrowing, both of which had important implications for present and future economic performance. 32. The policy of decreasing expenditure seems to have had a major impact. Since current expenditure could net be decreased, 
analysis: The text appears to be discussing the economic situation of a country, specifically the difficulties in achieving fiscal balance and the measures taken to address it. It mentions the current account deficit, fiscal imbalance, and the need to decrease expenditure and increase borrowing. The language used is technical and focused on economic concepts, suggesting that the text is related to economic development.