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Top economist Roger Bootle has called for a greater focus on public sector efficiency, but has warned against cutting debt levels too quickly.
In an interview with ePolitix.com, he said the aim should be to allow income growth to make the debt more manageable.
"Twice before, we've achieved this after fighting existential wars, the first against Napoleon and the second against Hitler," Bootle said.
"In neither case, by the way, did we deal with this by imposing draconian increases in taxation.
"How we dealt with it was by constraining the growth of public spending below the growth of the economy and letting economic growth produce the tax revenue."
Bootle is also sceptical about the future of the Financial Services Authority, which could gain more powers under Labour plans but would see its functions transferred to the Bank of England under the Conservatives.
"I do find it extraordinary that in an organisation that absolutely completely and utterly failed, it's hard to find a single good word to say about them, actually could end up with more status than power," he said. "It's quite bizarre, really bizarre."
For Bootle, the key question is not whether the FSA should survive or be scrapped, but defining the appropriate role of regulation.
The bigger and more active the regulator is then the less effective it will be, he argued.
"We'll get these vast rulebooks which no one reads or understands, like so many of these things that don't actually hit the spot, they'll progressively be something that you just sort nod to and nod through and don't take seriously.
"We want something simpler and clearer that allows maximum scope for the markets."
Click here to read the ePolitix.com interview with Roger Bootle.
Dods Parliamentary Communications Ltd