India has to raise revenues, mostly from direct taxes, to cut its fiscal deficit in the coming years and help control inflation , the revenue secretary said on Wednesday.
P.V. Bhide also said there was a need to phase out tax breaks which have outlived their utility.
"The need to reduce deficit was initially needed to reduce the crowding-out effect. But now it is needed to control inflation also," Bhide told reporters. (Reporting by Rajkumar Ray)