Fiscal deficit was reduced by pursuing a combination of four set of policy measures (i) mobilizing additional tax revenues (ii) reducing subsidies to public enterprises and corporations and (iii) bringing about a significant decline in debt servicing payments and (iv) containing defence expenditures. Monetary policy was kept reasonably tight during the first two years with money supply growth at about 9 percent.
The risks of some disruption to international trade and financial markets are not to be discounted completely, and the consequences of inaction are grave. The world economy functions through its financial services markets, and it is not a surprise, therefore, that the Year 2000 preparedness of the financial services industry is of great interest.