is important to bear in mind that many of the first best policy measures in respect of trade, industry and finance will create gross distortions in the economy unless the fiscal machinery in general and the tax structure in particular are efficient and equitable. In the absence of this pre-condition, measures like financial liberalisation and borrowing from the market by public sector enterprises will serve neither equity nor growth. Policy prescription, like politics, is no doubt the art of the possible; but unless the basic goals and the connection between different measures are clearly perceived, the suggested package of measures would in all probability be ineffective and would produce unintended repercussions.
