The warning given by the World Bank on the impending dangers on India's economic front has come as a rude shock. The World Bank in its latest India Development Policy review has warned that the 8 per cent growth target for the Tenth Plan period will not be achieved without a major revamp of the precarious fiscal situation. The Bank has prescribed reforms in tax and subsidy regime, the financial sector and the fiscal management system and an improved composition of public expenditure. The Bank's prescription should be appreciated in the right spirit. The fiscal situation is one of the most serious weaknesses in the economy at present and corrective action in this area is urgently needed...editorial