"Although the BJP led government is new, it is obliged to honour the pledge of the previous government. Besides I do not think a straight repeat of VDIS will be successful," he said.

VDIS had given a fair and full opportunity for black money holders to come clean, he said. "There should simply be no reason to repeat that exercise once again."

On whether exemption limits for personal rates of taxation should be raised and a new 40 per cent tax rate for the super rich be introduced, Chidambaram said, "I strongly advice against tampering with the tax rate. For those who want further lowering of tax rate, I have said tax rates have reached a resting point." "And for those wanting an increase in tax rates, I have said Indian tax rates are competitive and comparable to world tax rates. My conclusion therefore isthat the government should not tinker with the tax rates," he added.

Asked if he favoured sale of gold reserves to meet any economic crisis arising out of sanctions, Chidambaram said it will be short sighted and seen as an act of desperation and send wrong signals.

On whether such a crisis was around the corner, he said it would depend upon the skills with which the government manages the post-Pokharan situation. The government would have to get its act together and set out its objectives clearly and speak in one voice, he said. So far these three elements are absent in the management of the post-Pokharan situation, he added.

On BJP's hope to mop up additional resources through NRI savings to make up for any shortfall in multilateral assistance, he said NRI funds came in as portfolio investments or as deposits.