Rate of exchange: 198? $Us t = 304 bipkwele1984 $US t = 307 bipkwele.A/40/430 Eng 1i sh Page 7 14. As indicated below, there was a significant inprovement in public finance in 1984, although overall the budget remained in deficit. The sharp rise in revenue recorded in 1984 reflects primarily a transfer of revenues received in previous years but not credited to the account of the central administration. In addition, t,here were improvement.s in both the assessment and collection of revenue. However, given the very limited tax base of the economy, there is little scope for increasing Government domestic revenues. I5. On the expenditure side, the Gov^rnment has introduced greater austerity, which resulted virtually in no change in recurrent expenditures between 1983 and 1984. slages constitute the largest single recurrent expenditure, and the Government plans to undertake a series of measures (personnel reductions, salary freeze, job reclassification, etc.) designed to stabilize if not reduce these costs. To limit capital expenditures, it is'envisaged that no new projects rrill be started and work on existing ones will be stopped or delayed except on pfioriLy projects directly affecting productive sectors. Table I Government budget (Millions of bipkwele) 1983 1984 Revenue Import and export taxes Other tax and non-tax revenue Other income Expend iture Current Capital Overall balance3 699 2 32L 878 500 6 799 4 800I 999 -3 1006 575 75r 175 550 838 4 756 2 082 -2624 I Source: Ministry of Finance. 3. Balance of payments 16. The external position of Equatorial Guinea during the period under review remained extrenely unfavourable. The maintenance of an overvalued official rate of exchange for the national currency distorted costs and prices and discouraged the production of export goods while providing an incentive for unrecorded exports. Exports, primarily cocoa and lumber, remained essentially stagnant; however, there
**Analysis**
The text appears to be discussing the economic situation of Equatorial Guinea, specifically the government's budget and the external position of the country. The text mentions revenue, expenditure, and the balance of payments, which suggests that the category should be related to economic development or international trade.

**Category**
Economic development, International trade