New Delhi: Finance Minister Yashwant Sinha on March 4 expressed optimism about higher growth during the next fiscal due to agriculture reforms and said Centre will rationalise tax structure further to mop up higher revenues and maintain strict control over expenditure to bring down deficit.

"Long term growth in demand will come from the 70 per cent of the population who live in rural areas. That is why we laid emphasis on agriculture," Sinha said at a post-budget meeting organised by the Confederation of Indian Industries (CII).

Sinha, who had earlier stressed on over 7.0 per cent growth in the coming years, said the global economy was picking up and the exports were also slated to go up resulting in higher Gross Domestic Product (GDP) growth next fiscal.

Expressing firm commitment to reduce excise duty to 16 per cent CENVAT rate in two years and customs duties to 10 per cent for raw materials and 20 per cent for finished goods by 2004-05, Sinha said tax rates would come down further next fiscal.

Concerned over burgeoning deficit, he said "I took the Fiscal Responsibility Bill to Parliament with the intention of reducing deficit by 0.5 per cent a year. I feel guilty of pegging fiscal deficit higher at 5.3 per cent for 2002-03."

Fiscal deficit soared to 5.7 per cent this fiscal on account of shortfall in revenue and disinvestment, Sinha said.

"If India has to get over fiscal problems we have to look at revenues. Tax give- aways here and there will disturb the balance of the Budget. We will continue to have strict control over expenditure," Sinha said.

PTI