INCREASED GOVERNMENT DEFICIT DID NOT FIT REAGAN'S "BRAND", BUT POWER DEVOLUTION WAS A POLICY WHICH FIT THE CONSERVATIVE "BRAND".
One of Reagan's "brand" was to reduce government spending, since the US had "piled deficit upon deficit" (Reagan's First Inaugural Address 1981), but he didn't fulfill his promise. Before Reagan, the budget deficit was below $75 billion, but by 1986, the deficit reached $221 billion, largely due to 85% increase in military spending.
Devolving power of federal government was one of Reagan's "brand" which he did fulfill. He promised to "curb the size and influence of the Federal establishment" (Reagan's First Inaugural Address 1981). Thus, he supported Nixon's New Federalism and issued block grants, allowing states to spend money on social programs as they saw fit.