New Delhi: The government on July 13 ruled out dispensing with minimum support price (MSP) scheme for agricultural crops even as it said measures would be taken "step-by- step" to reduce subsidies.

"MSP will not go. It will not end," Finance Minister Jaswant Singh said, adding that the centre will work in tandem with the state government for better targeting of subsidies.

Indicating that softer interest regime will continue, Jaswant Singh said measures to boost savings would be taken.

The government would also strengthen the equity cult, Singh told reporters after the meeting of the Prime Minister's economic advisory council where an eight-point agenda was unveiled to achieve eight per cent growth.

The Finance Minister did not subscribe to the view that reduction in interest rates would lead to lower savings levels.

Describing the council meeting with economists as instructive, Singh said, "Very good ideas were thrown up in improving the general state of the economy and pushing up the reforms."

Though the meeting was convened to discuss electricity bill and petroleum regulatory board, Singh said issues relating to non-performing assets of banks, fiscal responsibility, minimum price mechanism and rural credit were discussed.

"Everything will be done step by step," the finance minister said adding, "Things will fructify at the right time." But he declined to give further details.

Asked if government would be able to implement the eight-point agenda set by the Prime Minister, Singh said it was the responsibility of the government to implement the policies.

PTI