On excise, VAT and service tax, no major changes could be expected till India had a Goods and Services Tax in place. On income tax, he said the rates were quite reasonable and moderate. Asked if the rates could be reduced in the next two to three years, he said, "I can't say. The tax base must become wider and compliance must become better." On apparent contradiction between attempts to lower tax levels and levying of surcharge, FM said the government had not raised any surcharge except on education.

The minister said, though he is not worried about the state of the economy, he has three concerns. "The main concern is that we should not flag in our resolve to maintain fiscal prudence and fiscal stability. That is fundamental. Growth has taken place because of our unwavering commitment to fiscal prudence and stability. We should not allow that to flag.

Secondly, he said, "Investment is key to growth. Every impediment to investment must be removed whether in public sector, private sector, domestic or foreign." "You can have regulations. But it should not become impediments to investment. If a country like India requires high growth, we must always revisit the impediments and regulations to ensure that investment continues to grow," he added.

"The third concern is we are not paying enough attention to human resources. A large country like India has to depend on its own human resources. Skill shortages are emerging,"