Kolkata, July 10 (ANI): Defending central government's decision to hike tax rates, Finance Minister Pranab Mukherjee in Kolkata on Friday opined that the move was aimed at reducing the widening fiscal deficit of the national economy. After formal signing of a Memorandum of Understanding (MoU) pertaining to the beautification the Kolkata riverfront in cooperation with the Indian Railways Pranab noted that the distribution of money allocated for developmental activities by the central government to the states was not being properly utilized and channeled.