Solution

There are several strategies to lower the government deficit:

1. Cutting government spending: Government spending cuts can help lower the deficit. Government spending cuts may have a negative impact on developing countries like India's economic development.

2. Increasing tax revenue: Increasing taxes will bring in more money for the government, which will help reduce the deficit. However, when taxes rise, disposable income declines, which finally results in a drop in aggregate demand.

3. Disinvestment: By reducing its investment in public sector companies, the government can raise more money. Government assets could be reduced as a result of this.