Talking to newspersons here, Prof Khusro said both the Centre and States should slash unnecessary expenditure. The staff pattern should be changed and the Centre and State Governments would have to work hard to rationalise the set up. He said funding agencies like the World Bank had also recommended reducing the Government machinery and other bodies.

Prof Khusro, who was here with the other members of the Commission to discuss the State's share in the next Five Year Plan, lamented at the functioning of the Government. Even important files have to cross over six time-consuming complicated stages before disposal, he said.

He said the Commission had examined the complicated and unproductive functioning of the Government and suggested cutting out part of the maladministration.

He also suggested establishing a work force to raise the productivity of the StateGovernment.

Prof Khusro said the Commission was working on the restructuring of the financial situation of the Centre and State to establish budgetary balance and bring about macro-economic stability in the next Five Year Plan.

Suggesting that the State and the Centre should explore new ways for generating resources, he said the budgetary imbalance could be reduced by raising the resources. He further said the State should bear its own financial burden, instead of putting the burden on the Centre.