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India needs lower fiscal deficit, to end tax breaks
August, 22nd 2008

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)


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