CENTRAL SALES TAX-States Bamboozled

of short-term funds are swirling around in the system at a time when the industries in general and medium and small-scale units in particular are starved of bank credit. Clearly, it is necessary to bring about a paradigm shift in banking policies. Specifically, banks must be persuaded to achieve incremental credit-deposit ratios of at least 60 per cent by the end of 1997-98. The spur this would provide to the economy in general and industry in particular will enlarge the possibilities of productively deploying the foreign exchange reserves to step up domestic investment and production.