Question : ADVERSE BALANCE OF PAYMENT



(a) the balance of payment of the country as on date;

(b) whether there is adverse balance of payment; and

(c) if so, the effective steps being taken or proposed to be taken by the Government in this regard?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)

(a), (b) & (c): The balance of payments estimates are available upto end-March 2005. According to these estimates, there was a deficit of US$6.4 billion in the current account of the balance of payments for the year 2004-05. For the same period, there was a surplus of US$32.6 billion in the capital account of the balance of payments. As a result, there was an accretion of US$26.2 billion in the foreign exchange reserves of the country during 2004-05. The balance of payments continues to remain healthy and the external sector continues to be a source of strength for the economy.