``Although it is a new government, it is obliged to honour the pledge of the previous government. Besides I do not think a straight repeat of VDIS would be successful,'' he said in an interview on the eve of the union budget.

He said VDIS had given a fair and full opportunity for black money holders to come clean. ``There is simply no reason to repeat that exercise once again.''

Asked if the exemption limits for personal rates of taxation should be raised and a new 40 per cent tax rate for the super rich be introduced, Chidambaram said, ``I strongly advice against tampering with the tax rate.

For those who want further lowering of tax rate, I have said tax rates have reached a resting point.

And for those who want increase in tax rates, I have said Indian tax rates are now competitive and comparable to world taxrates. My conclusion therefore is that government should not tinker with the tax rates, he said.

Asked if he favoured sale of gold reserves to meet any economic crisis arising out of sanctions, Chidambaram said it would be short sighted and seen as an act of desperation, apart from sending wrong signals.

On whether such a crisis was impending, he said it would depend upon the skills with which the government managed the post-Pokhran situation. A skillful government can negotiate its way through the hurdles that may be placed.

The government would have to get its act together and set out its objectives clearly and speak in one voice, he said adding that so far these three elements are absent in the management of the post Pokhran situation.

On BJP's hope to mop up additional resources through NRI savings to make up for any shortfall in multilateral assistance, he said NRI funds came in as portfolio investments or as deposits.

``That is not the kind of foreign money we want. What we need is FDIprobably in infrastructure projects. I doubt if there are enough NRIs who can commit FDI's in large projects and infrastructure." On whenter the government could come up with infrastructure bonds, Chidambaram said, it had been debated last year. "There will even be an early draft of the scheme in the files of the finance ministry. I would not be surprised if the finance minister takes up the idea for implementation in the budget.''