New Delhi: The president, A.P.J. Abdul Kalam, yesterday said that the Congress-led coalition would target an annual growth rate of 7-8 per cent backed by a massive step-up in investment in agriculture and infrastructure, even as the economic reforms would continue but with a "human face."

Addressing a joint sitting of both houses of parliament, Kalam said that the tax structure under the new government would be "stable" and "citizen friendly" though major tax reforms would be unveiled on the way to expand the taxpayers'' base and to improve compliance.

In order to maintain a "high degree of fiscal and financial discipline," the president said that attempts would be made to eliminate the Centre''s revenue deficit by 2009.

Kalam announced that a cess would be proposed on all central taxes to finance the commitment to universalise access to basic education.

Calling for "selectivity and strategic focus" on public sector units, the president said that privatisation would be considered on a case-by-case basis and that full managerial and commercial autonomy would be accorded to successful, profit-making companies that operate in a competitive environment. While chronic loss-making units would be sold off or closed, the president said "private industry would be inducted to turn around companies that have a potential for revival."

Adding that the capital market was reflection of the true fundamentals of the economy, the President said that the Government would remain "deeply committed" to its orderly development. While foreign institutional investors and foreign direct investment would be encouraged, the government would at the same time protect the interests of small investors by offering them new and safe avenues for investment.