<h1>Government Targets 4.1% Deficit in 2014-15 Budget Amid Tax Reforms and Subsidy Rationalization Efforts.</h1> The government is committed to fiscal consolidation, aiming to meet the 4.1% deficit target set in the 2014-15 budget. Despite challenges such as moderate indirect tax increases and a high subsidy bill, enhanced revenue generation is prioritized. The Economic Survey highlights efforts to modernize tax administration and promote investment, alongside disinvestment in companies like SAIL and Coal India. Central assistance to states increased significantly, with energy and transport sectors receiving substantial funding. Rationalizing subsidies and implementing tax reforms like GST are crucial for sustainable fiscal consolidation, with a focus on medium to long-term fiscal policy frameworks.