The Centre was expecting over six per cent growth of gross domestic product during 2003-04 provided there was normal monsoon during the year.

"The economy is expected to grow by over six per cent during the next fiscal, assuming that there is no drought like situation," Dr Tarun Das, economic advisor, Union ministry of finance, said on Monday.

The agriculture sector, he said, was likely to register a growth of about four per cent while industry and services sectors would grow by six per cent and seven per cent respectively.

The overall GDP growth rate in the current year was likely to be about 4.4 per cent with the vagaries of monsoon depressing the agricultural growth.

With the economy already showing signs of recovery, the Budget provisions would act as a catalyst to further the growth rate in the next year, he said.

Asked about possible adverse impact of any war breaking out in Iraq, he said, "It will not affect the GDP growth. Instead, it may boost our economy further".

With a comfortable foreign exchange reserve of $76 billion, there should not be any worry on the external front and the exports are likely to maintain its growth under such circumstances, he added.

Das, who was addressing a panel discussion on 'Union Budget 2003,' organsied by the Indian Chamber of Commerce, said while the economic fundamentals remained strong, the government was concerned at the huge revenue deficit estimated to be Rs 112,292 crore (Rs 1122.92 billion) for the next fiscal.

Stressing on the need to enhance revenue mobilisation, he said the government was planning to further cover the services sector, which constituted about 50 per cent of the GDP, under service tax net

He, however, ruled out the idea of imposing tax on agri-income, as suggested by the Kelkar Committee saying, "It is not practical. Who will keep the accounts? The farmers are not rich people. It is the intermediaries who jack up prices and earn hefty amounts by providing their services."

Asked about last year's Budget proposal to give a free hand to private firms, employing less than 1000 employees, to lay off their workforce, he said, "The issue is not dead and is being dealt by the labour ministry."

Commenting on the Centre's efforts to promote public-private partnership for infrastructure sector, he said, "The government wants to act as a falicitator by providing lands at concessional rates. But high rates of stamp duty and registration charges pose a problem. There is need for reforms at state level and municipalities to address the issue."