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This refers to "Mid-Term Review of the Economy: Fine-tuning of policies needed" (Business Line, November 19). It is, in fact, ironical that the Centre, despite its commitment to fiscal correction, gives incentives to the States for their fiscal correction efforts.

Though it is desired that the fiscal correction efforts of the Centre and the States be synchronised, the grant of incentives to the states is neither desirable nor warranted. The States have their own responsibility to keep fiscal and revenue deficits under control.

The Fiscal Responsibility and Budget Management Act, 2003 is a landmark legislation bringing fiscal responsibility into the statute books and its implementation over the next few years will have a definite positive impact on public finances.

Bringing revenue deficit to zero by March 31, 2008 may be a stiff target, but not unachievable with the right will and co-ordination. The Centre may advise the States to adopt such Acts also.

C. Ramesh,

Keeramangalam (TN)

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