Mr Wolfensohn gave a pat to the government for its white paper on state finances released during last winter session. ``I am very much impressed by the recommendations in the white paper and convey my admiration for the steps taken over the fiscal management,'' he added.

After an hour-long meeting with Chief Minister Deshmukh and his deputy Chhagan Bhujbal at the chief minister's official residence on Tuesday, Mr Wolfensohn told reporters that there was some misconception about the bank and its policies and that his job was to support the chief minister on developmental issues and not run his government.

He made it clear that no conditions were laid down by the World Bank. ``The chief minister is an elected representative and his job is to run the government like a family. We are there to provide necessary support,''he said.

Mr Wolfensohn said that the government's measures to revive state economy with proper fiscal management, power sector reforms, introduce user charges for drinking water and its various social infrastructure programmes were positive, appropriate and practical.

``We support governments in the country who act in an intelligent manner and I think Maharashtra government is doing a sensible job,'' he added.A visibly pleased Mr Vilasrao Deshmukh said that Mr Wolfesohn's visit was a real morale booster for his government's efforts to strengthen the state economy and maintain the ``most-favoured status'' among investors. He felt the flow of funds into the state from the World Bank, which had been stopped during the previous Shiv Sena-BJP regime, would now resume.

Mr Deshmukh said that no specific proposals for financial aid were made before the visiting World Bank president but added that issues ranging from power, water supply, the Mumbai urban transport project-II, health, irrigation, social forestry were discussed and the government has sought the the Bank's assistance for the ongoing projects as well as for the proposed ones.

He denied the Opposition's charge that his government had abjectly surrendered to the World Bank for seeking its assistance.