Sinha said the 10 per cent surcharge on corporate and personal income tax was a temporary measure and may be withdrawn next year if the situation so warrants. "In any case, I don't buy the theory that greater revenue mobilisation comes only when tax rates are low. We will ensure that our revenue projections are met through better tax administration," he added.The finance ministersaid the surcharge works out to 2-3 per cent which would result in an equitable distribution of the burden.

On why the budget was silent on a statutory cap on debt as suggested in the Economic Survey, the finance minister said the timing was not right. The pre-requisites have to be in place before we take such a decision. There are several unavoidable expenses like interest payment, pension, small savings etc. "I can't default on these payments," he said.

On the government's disinvestment programme, Sinha said the government was confident of meeting the "modest" target of Rs 10,000 crore next year. "We have plans ready to go ahead with strategic disinvestment in some public sector undertakings as recommended by the Disinvestment Commission."He said irrespective of the disinvestment amount, private sector would be brought in as strategic partners with management control in some PSUs next year. He defended the decision to disinvest in oil companies through cross-holding and said it was not "phoney"disinvestment.