Since the Government of Lesotho has responsibility for managing the economy, it is particularly interested in the levels of the gross domestic product (GDP), gross national product (GNP), aggregate demand and gross savings. More
precisely, the government has certain economic objectives that it would wish to achieve. These objectives are affected in some way by the levels of the above economic aggregates. The aims and objectives of government are contained in the Fourth Five Year Plan (The Fifth Plan which is still in preparation stage is already overdue) and the Enhanced Structural Adjustment Programme (ESAP) policy framework papers. The Government has relied traditionally upon fiscal policy, i.e. variation in government expenditure and taxation, as the primary weapon to achieve its objectives. However, during the SAP period which started in 1988/89 (now ESAP) emphasis is also placed on monetary policy in order to fine tune the economy.