text: 180. As can be seen from table 25r capital expenditure has been stagnant throughoutthe Plan period, declining substantially in real terms. By the last year of thePlan, L984/85, it amounted to about u 40 million in lggo/gr prices, a drop of35 per cent since the beginning of the plan. The difficulty in raising cipitalexpenditure reflects two constraints: firstly, absorptive capacity appears to below, due to, inter alia, the insufficiency of trained personnel to evaluate viableproiects and put thern into execution. secondly, budgetary pressures have increasedespecially in the last tno years of the Plan, owing to the renewed growth ofrecurrent expenditure, pre-empting part of the solid gains achieved with regard tocurrent revenue. 18r. Durinq 1984 the naloti depreciated by a total of 38.5 per cent against thedollar. one effect of this has been to increase the competitiveness of Lesothorsexports, but this has been more than outweighe<l by the accelerated inflation(estimated at 20 per cent in 1985). Debt servicing increased from M I0 million inI98L/82 to M 41 miltion in I984l85.A/40/44t English eage 63 Table 25 Lesotho: summary of government budqetarv opergFi{r?g.4PIinq the (Millions of maloti) r980/8r L98r/82 Leez/83L984/85 Projected L983/84 actual Total receipts# Revenue Grants Total expenditure Recur rent Capi tal Def ici t Foreign financing Drawinq Amorti zation Domestic financinq (net) Gross national product Deficit as percentage of GDP125. s 104 .3 2L.2 166. r 103.9 62.2 -40.5 10.6 t2.4 -1.8 30.0 542.0 7.5I24.8 r-11.1 13.7 183 .6 116.6 67 .0 -58.8 44.2 46. 3 -2.1 14.6 6_43.7 9.1L44.2 r34 .8 9.4 185. 2 L2L.7 63. 5 -41 .0 24.0 42.9 -18.9 17.0 79r. 3 5.2L77.4 169 .9 7.5 r.99.3 r41..5 s7.8 -2L.9 10.7 32.7 -22.0 r1 .2 915.1 2.4225.0 21s.0 10.0 233 .0 163.0 70.0 -8.0 8..,0 30 .0 -22.0 0.0 I,051. .5 0.8 Source: Data provided by the Government of Lesotho.A/40/44L English eage 64 D. Balance of payments I82. Lesothors exports peaked in 1980/81 and then declined slightly in each of thefollowing three years, while imports have continued to increase. Remittances fromworkers in South Africa are a dominant item in the current external account and toa great extent offset the trade deficit on imports. Table 26 Lesotho,: summary of bal.ance of pavments (!lillions of maloti) I 23.3 -8.8 34.3t98l I98 2 1983* 1984 * * Current account (a) Goods and services Exports, f.o.b. Imports, c. i. f. Workers I remittances Other, official, net Other, private, net (b) Unreguited transfers Long-term capital, net Official Private Short-term capital
analysis: The text appears to be discussing the economic situation of Lesotho, specifically the government's budget, capital expenditure, balance of payments, and trade deficit. It highlights the challenges faced by the country, including low absorptive capacity, budgetary pressures, and inflation. The text also touches on the country's reliance on remittances from workers in South Africa and the impact of the depreciated national currency on its competitiveness.