At the same time, policy decisions tended to place a greater emphasis on achieving fiscal balance, and much less than in the past on other macroeconomic or development needs. The general tendency to reduce the role of the State in the economy meant that whenever budgetary adjustment was considered necessary, it was sought through spending cuts rather than by raising additional revenue. These institutions also emphasized the need to strengthen the financial position of the public sector and reduce government interference in the allocation of resources (TDR 2006, chap. It argues that more progressive taxation can help to reduce inequality in the distribution of income and wealth without curtailing incentives to undertake investment in fixed capital, innovation and skills acquisition.