In addition, we focus on fiscal empowerment which was clearly articulated around 2000 in the Annual Report of the Board of Directors of the RBI. Exclusive focus on fiscal deficit may tend to reduce the role of the Government, and consequently, it will not be in a position to aid the process of growth, in particular, inclusive growth.
Re-prioritisation of expenditure may be achieved through reduction or elimination of subsidies and deployment of resources thus released to the more needy sectors. Higher level of resources may also be available through reduction in tax exemption.