* Greek PM says will prove doubts about debt programme wrong
* To cut deficit by 4 percentage points in 2010
* Changes in tax laws, wage programmes on cards
* Focus is on implementation, not new plans (Adds quotes, background)
By Manoj Kumar and Abhijit Neogy
NEW DELHI, Feb 5 (Reuters) - Greece sought on Friday to overcome sceptics about its commitment to slashing its massive fisal deficit, promising to push through tax laws and other measures to achieve its debt reduction targets.
The debt crisis in Greece and other southern European states has sent shockwaves through financial markets and stoked fears of social unrest in the country. Greece has said it will take tough measures to get out of the crisis and the European Union vowed on Wednesday to hold it strictly to an austerity plan.
"I can understand the doubts, but that's why we have to prove. We will credibly apply this programme," Prime Minister George Papandreou told reporters on Friday while on a visit to India's capital.
"In near-term, we are applying the programme, that is, changing the tax laws (and) wage programmes, which we will be changing in many years," he said, without elaborating.
Greece has pledged to reduce its budget deficit by 4 percentage points to 8.7 percent of gross domestic product (GDP) in 2010 and thereafter to 5.6 percent in 2011, 2.8 percent in 2012 and 2 percent in 2013.
In 2009, the fiscal deficit was 12.7 percent of GDP.
On Thursday, Finance Minister George Papaconstantinou said he would not raise the country's 40 percent income tax rate or change the way bank deposits were taxed in order to generate extra revenue, but the government did announce a hike in fuel taxes earlier this week. [ID:nLDE6132TM]
The finance minister said public sector pensions would rise just in line with official inflation projections, a day after the European Commission warned of the need to cut the public wage bill.
The European Union is keeping Athens on a unprecedented short leash, demanding deep fiscal adjustments and regular reports on the progress in slashing Greece's fiscal deficit to below 3 percent in 2012. [ID:nLDE6121AC]
In Delhi, Papandreou said, "applying the programme is a test now. It is not of thinking new measures."
He said Greece was absorbing substantial funds from the EU to cut the deficit and aid growth.
The International Monetary Fund has also offered to help Greece, though Athens has said it would not seek assistance there.
Many analysts expect the European Union to intervene with some kind of aid for weak members if that is necessary to keep the euro zone intact, but their problems could hurt growth in Europe for years. [ID:nLDE61320B] (For more news on the Greek debt crisis and its impact on European and global markets, click on [GR-GVD-RTRS-LEN]) (Writing by C.J. Kuncheria; Editing by Kim Coghill)