The correct answer is: a) Expenditure control.
Expenditures are the main component of the fiscal deficit. By controlling expenditures, the government can reduce its fiscal deficit.
Revenue generation is another way to reduce the fiscal deficit. However, it is a more difficult task than expenditure control. The government can increase revenue by raising taxes or by increasing the prices of goods and services that it provides.
Borrowings can also be used to reduce the fiscal deficit. However, this is not a sustainable solution in the long run. The government will have to repay the loans with interest, which will increase its future expenditures.
Privatization is not a way to reduce the fiscal deficit. It is a way to raise revenue. However, the revenue from privatization is usually not enough to offset the loss of government revenue from the sale of assets.
In conclusion, the Mizoram government can reduce its fiscal deficit by controlling expenditures. This is the most effective way to reduce the deficit.