The theme for this third microfinance expo is “Inspiring Growth through Microfinance”. When we look at statistics, the informal sector, which includes small and microentrepreneurs, contributes around 17percent of our GDP. 1 In some Asian countries, this particular sector form around 60–80 percent of GDP.
Under the present circumstances, therefore, the automatic stabilisers should only be allowed to work fully in those countries whose budget positions are close to balance or in surplus. Recently, suggestions have been aired to replace targets for the public sector deficit with targets for public expenditure. I am strongly in favour to stick to the tried and tested deficit target.