The government should reduce primary deficit at the Centre and in states by carrying out tax reforms, reducing power sector losses and phasing out petroleum subsidies, said former World Bank vice-president Mark Baird. Releasing the World Bank's economic report, "India: Sustaining reforms, reducing poverty,' at the Assocham-NCAER forum, Dr Baird said that India should reduce financial sector risks by implementing the securitisation law, linking returns on PFs and small savings to market benchmarks and establishing a clear framework for managing state guarantees. Dr Baird is the principal author of the report.