Importantly, Sinha said that the disinvestment will take place without waiting for a turnaround in market sentiment. "If the small investor has to come to the market then he must get the share at an attractive price. I can't sell the shares to him when the Sensex is at 4,500 levels so that once again he suffers when the market falls to levels of 3,000 points. The market is not doing well because the small investor has run away from the market as he has been cheated," said Sinha.

Speaking at a seminar on the `Revival of the Capital Market' organised by the All India Association of Industries, Sinha said that the government has to learn to manage its finances better.

Sinha said that with almost every party having been in power at the centre or state level it is time that a political consensus was evolved on economic populism.

He referred to the rollbacks that he was forced to make post-budget and said that had the subsidy on urea been removed it would have not only enhanced the soil fertility but also filled the coffers of the government.

"No government will be able to contain the fiscal deficit till such time competitive populism is not replaced by mature policies," said Sinha. "I have a difficult job at hand to keep the fiscal deficit at promised levels. But I promise you that fiscal slippage shall not be allowed. An exercise to ensure that this happens has already been kicked off," said Sinha.

A part of the exercise is an individual review of the revenue collection performance of each commissioner of income-tax and excise. "Unlike last year we will definitely meet our revenue targets," said Sinha.

He added that the government has a well thought out policy on public sector undertaking (PSU) disinvestment. The proceeds from the disinvestment will be used to create fresh assets, he added.

He also said that measures are being put in place to ensure the revival of the primary market and he is touch with Sebi, stock exchanges and finance ministry officials to form measures that are needed to revive the primary market.

Sinha said that he does not buy the theory of giving concessions to prop up the markets and, therefore, even though the government is keen to bring in buy-back of shares this should not be the reason for the market to bounce back.

"If we keep waiting for these small things to boost the market then we will not be able to bring into play a policy framework which leads to a long-term strengthening of the markets," said Sinha.