On subsidies: While there will always be a role for well targeted subsidies for the poorest segments of society, we simply cannot afford generalised subsidies on a large range of goods and services.

On PSU disinvestment: As I have stated in my budget speech in February 1999, the government's strategy towards public sector enterprises should combine a judicious mix of strengthening strategic units, privatising non-strategic ones through gradual disinvestment or strategic sale and devising viable rehabilitationstrategies for weak units.

On insurance sector reforms: I completely agree that insurance sector reforms must be expedited not only to expand the insurance services to the people of India but also to augment the availability of long-term funds for infrastructure sectors. As you know, our government had introduced far-reaching legislation to this effect in the last Parliament.

On India's WTO commitments: We must recognise that international trading agreements such as Gatt and WTO lay down multilaterally agreed rules for international trade. As a relatively small participant in world trade, it is in our long-term interest to have a world trading system which is based on rules applicable to all trading countries, including the more powerful ones. This is far better that the rule of the jungle in which the more powerful trading nations could more easily damage the interests of less powerful trading countries. Of course, during any process of multilateral trade negotiations, it is incumbent ongovernment to further our interest to the maximum feasible extent. During negotiations we must ensure that all distortions which militate against our interests are removed and the rules are fair and equitable for all.

On tax reforms: In my last budget, we have carried out reforms in excise taxation. We also undertook significant restructuring of our customs tariff and I indicated in my budget speech that our customs duty structure will be phased down to Asian levels in five years. On direct taxes, our goal should be to continue expansion of the tax base, modernise tax administration and make the system more fair and friendly to tax payers.

On the defence budget: There can be no question of compromise when it comes to the defence of our country. We must find the resources necessary to equip our armed forces with the most modern weapons and equipment.

On the role of finance commission: The work of the 11th Finance commission is in progress. Its report is due next year. FinanceCommissions generally have played an useful role.

On the SSI sector: I am a strong believer in the growth of small scale enterprises in all sectors of the economy. Incidentally, this sector has demonstrated healthy growth in recent years. I agree that to sustain healthy growth we have to move away from protection and instead emphasise stronger support through finance and infrastructure services.

On infrastructure development: It is true that adequate growth of our infrastructure sectors is crucially dependent on appropriate cost recovery from users. We must press on with the transition to commercially viable organisations and pricing policies in our infrastructure sectors. There is really no alternative to asking users to pay for the cost of infrastructure services, if these sectors are to grow at rates necessary to support seven per cent plus growth in our GDP, which is necessary for rapid abolition of poverty and unemployment.

On state funding of elections: The government alreadyprovides hundreds of crores to fund the election process. If you mean that the state should also fund political parties, this is a large issue on which we need a national debate.

On social sector spending: Well-targeted expenditures in social sectors such as education, health and welfare are absolutely essential to the long-term development of our economy. As important as expenditure is the need for efficient delivery services and accountability of service providers to beneficiaries. In my recent budget we have undertaken the wide ranging National Human Development Initiative to empower vulnerable groups in society to take advantage of the process of development in the areas of food, health, education, employment and shelter. The budget initiated the new scheme "Annapurna" to provide 10 kg of foodgrains per month free of cost to all indigent senior citizens. This is a form of national food guarantee for those not covered by the Targeted Public Distribution System.