The core group felt that a new realistic target was necessary as there was not much time left in this fiscal to achieve the ambitious figure spelt out in the budget. Even meeting the new target would be difficult unless the ministers act fast to take advantage of the initial euphoria and zooming Sensex, government officials said.

The disinvestment process has been delayed mainly due to elections and needs to be restarted immediately, more so due to the impending Y2K problem that will necessitate suspension of electronic dealing towards December- end.The officials admitted that the lower target would put further pressure on the government as far as bridging theballooning fiscal deficit is concerned, but added that this could be tackled through certain other tough decisions, including belt-tightening by the government.

The other measures include a one-time Kargil cess to offset the expenditure overrun on account of the border conflict and partly to recover the unbudgeted cost of general elections. "The Kargil tax is just one of the options being considered", they said.

In addition, the prices of LPG and kerosene and even motor spirit are likely to be increased in tandem with the diesel, though not in the same proportion.According to highly-placed sources, the actual decision with regard to the quantum of Kargil cess was likely to be taken as part of the mid-year review of the budget. The formal exercise to review the economy would begin soon after the appointment of the new finance minister.

Although the finance ministry constantly monitors the fiscal position, it was pointed out that corrective steps were usually firmed up at the time of the mid-year reviewof the economy which takes place in September/October.Finance secretary PG Mankad, soon after his return from the Washington Fund-Bank meetings, held talks with the chiefs of the Central Board of Direct Taxes (CBDT) and Central Board of Customs and Excise (CBEC) on revenue performance in the first six months of the current financial year.

It was stressed that the foremost priority for a government looking at a five-year term in office was to contain the fiscal deficit. The fiscal deficit at the end of August was Rs 48,126 crore, more than 60 per cent of the budget estimates. The situation was likely to deteriorate unless measures were taken to increase tax and non-tax revenue.

It was felt that expenditure compression beyond a point would prove counter-productive and hamper the industrial recovery process.

The other priority items in the agenda of the new government include expediting insurance sector reforms and pushing other legislation pertaining to FEMA, money-laundering, patents, Companies Bill,etc.

Based on the economic agenda of the National Democratic Alliance (NDA), several ministries have already prepared action plans which were being coordinated by the cabinet secretary. Even the Planning Commission has submitted its agenda to the government. A host of these legislative measures, it may be mentioned, had been pending in Parliament for want of requisite numbers. Now with the NDA having about 300 members in the Lok Sabha, it would be not be difficult for the government to get these important legislative measures approved by the Parliament.

Meet today to firm up strategy for Seattle talks

The group of secretaries on World Trade Organisation issues will meet on Monday to finalise India's strategy for the Seattle negotiations beginning late November. The group is expected to prepare a blueprint on India's position on various issues pertaining to trade and services. The Indian delegation at the Seattle will be led by the new commerce minister. The chambers of commerce and industry havealready started giving their inputs to the government.