Third, we cannot sit back and hope that tax increase will deliver fiscal consolidation on a platter. Revenue expenditure has increased from around 12  BIS Review 122/2009  3  per cent of GDP during the period 2000-08 to over 15 per cent now. We need to work seriously on expenditure compression.
Accordingly, we have proposed to raise the minimum Tier l capital requirement, for captive NBFCs, NBFCs with major exposure to sensitive sectors such as capital market, commodities and real estate, and NBFCs predominantly engaged in lending against gold jewellery.