Speaking at the 56th meeting of the National Development Council (NDC), he said the gross budgetary support for the country's development has to increase, along side reducing gap between expenditure and revenue.

'The states too must reduce fiscal deficit since the debt position has become very difficult in many states. The Centre's ability to provide resources is limited...the states have to aim at much better revenue performance and exercise progressive control over subsidies,' he said.

Ahluwalia particularly targeted the power sector where, he said, 'situation is deeply distressing' with distribution losses of Rs. 70,000 crore.

These losses are being funded by the banking system, which 'cannot evergreen loan indefinitely.'

The NDC, headed by the Prime Minister, also comprising senior Cabinet ministers and all chief ministers, is the highest body for formulating the country's five year plans. The NC meeting has been convened to discuss the draft Approach Paper to the 12th Plan

The Deputy Chairman also called for early implementation of the proposed Goods and Services Tax (GST) for creating a single market across the country and mobilizing revenues. He emphasized the public-private partnership model for development.

He also suggested ways of improving governance by use of technology. Initiatives like UIDAI's Aadhaar smart card for all citizens are underway to monitor centrally sponsored schemes.

Ahluwalia also called for exempting horticulture produces from the control of the APMC Act and urged the state governments for more action in this connection. He also suggested efficient management of resources and energy use efficiency.