Fiscal deficit: The fiscal deficit can only be reduced by cutting down borrowings and stricter control over non-plan expenditures especially in low priority areas. The government should raise resources through boosting export revenues and through cautious sale of PSUs assets.

Subsidies: Under the present socio-economic conditions, outright withdrawal of subsidies may not be practical but there is certainly scope for rationalisation through targeting those who need and taking out those who can afford.

Disinvestment: I am not in favour of disinvestment in major PSUs like SAIL, IPCL, ITDC and Indian Airlines. These units should be made viable and be professionally managed. I suggest financial engineering of strategic units, privatising non-strategic ones through gradual disinvestment or strategic sale and devising viable rehabilitation package for ailing units.

Insurance sector reforms: We believe that the sector should not be opened to outside players since there is always fear of misappropriation of people's fund by the private operators. The LIC and GIC should be given competitive edge and take confidence building measures through efficient service. Same thing happened in Japan.

WTO commitments: It is all humbug and total surrender to USA materialism. WTO and Dunkel are anti-farmer and anti-people. Certain provisions of the agreement had adverse effects on the Indian economy. We should oppose additional agenda imposition by the advanced countries through mobilisation of support among the developing countries.

Taxation: The tax regime should be made more friendly. Indirect taxes should not be further reduced. To generate resources, direct tax base must be expanded.

With regard to taxing agricultural income, I maintain that farmers still form the backbone of Indian economy and any tax on them may upset the bottomlines of the entire community. Of course, those rich farmers transferring agricultural income into other assets like farm houses etc should be brought under the tax net.

Defence budget: The defence budget should be hiked substantially from the present 2.48 per cent of the GDP to 5 per cent under the capital account so that modern equipment could be inducted in the defence and forces be equipped with advanced arsenal.

Finance commission: The commission has an important role to play in strengthening Centre-state relationship on revenue sharing. People with innovative ideas should be sent to the commission as chairpersons.

Small-scale sector: 50 per cent of the small scale units become sick due to non-availability of working capital. The sector should have easy access to finances on easy terms. Protection should give way to competition in the area.

Infrastructure development: The government should play the role of a facilitator in the development of infrastructure supplemented by efforts of the private sector. If Tatas can manage power supply in Mumbai efficiently, there is no reason why they should not be allowed to enter the aviation sector. The users should pay for the services provided. Long-terms funds can be tapped from insurance sector and provident fund through an amendment in the act.

State funding of elections: Serious efforts need to be made in the direction. It will pave way for minimising black money generation and will help curb nexus between political-corporate sector. Moreover, since majority of the industrialists is in no mood to finance the elections, thanks to the frequent polls, the government should create a fund.

Social sector spending: I believe in the principle of `social justice'. The government should ensure freedom from poverty, hunger and employment. There are no two opinions that in the facilities of public health education and poverty alleviation, the country is lagging behind even after 53 years of independence. The system needs to be improved drastically. Secondly, the delivery system needs to be made more effective since only 35 per cent of the social benefits announced by the government reach the needy.

Corporate sector: Our obsolete corporate laws need to be changed to bring them at par with international laws. Anti-trust legislation is now an integral part of the new world economic order. All mergers and acquisitions of companies should come under scrutiny by the Company Law Board before the event takes place. The board should weigh merits and demerits of such mergers and acquisitions.

Agriculture: Indian economy is basically agriculture-based and driven by the rural market forces. Restriction on the movement of agri-commodities should be removed. Various central and state laws relating to supply, pricing, stocking, export and import of agro-products should be reviewed. The rural credit delivery system also needs to be streamlined.

Labour: We should maintain a proper balance between labour's rights and duties. The employment security should be linked to income security. There is a need to establish a credible system of compensation and social security net. It could be in the shape of golden handshake or unemployment insurance scheme. The unemployment insurance scheme is a better option since it would ensure a regular income security on separation or retrenchment.

(As told to Rakesh Sood)