Fiscal deficit refers to the difference between government expenditure and its revenue, excluding borrowings. Measures to control it focus on increasing revenue and/or reducing expenditure. Encouraging FDI boosts capital inflows, which can indirectly help manage the deficit by strengthening the external sector. Privatization and disinvestment (selling PSU shares) generate non-tax revenue for the government, directly reducing the deficit. Downsizing bureaucracy, while potentially leading to expenditure savings in the long run, is more of an administrative reform and not a primary direct measure for fiscal deficit control compared to revenue generation or expenditure cuts. However, a leaner administration can lead to efficiency gains and cost reduction.