ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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BANGLADESH-World Bank Prescriptions

ings accounting for a substantial government investment of Rs 40,121 crore has to be viewed against the government's average borrowing rate of 10.2 per cent in 1991-92. No dividend was received from 187 public sector undertakings in which Rs 36,189 crore were invested up to 1991-92. The picture would have been more complete if the report had also provided information on the interest received from PSUs and other undertakings on the debt capital supplied by the government Another piece of useful information in the report relates to the valuation of external debt. The budgetary documents present the rupee value of external debt at historical rates of exchange. The CAG's report points out that while at historical rates of exchange the outstanding external debt at the end of March 1992 was Rs 36,948 crore, at the current rate of exchange it was no less than Rs 1,09,608 crore, that is, almost three times as large, which measures the additional burden on the budget as a result of the depreciation of the rupee. The outstanding external liabilities at historical rates of exchange as a percentage of GDP at current market prices was 6.1 per cent, whereas at the current rate of exchange the ratio was 18 per cent.

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