Test Suite Reduction is an optimization technique to identify the minimally sized subset of test cases with enforced constraints involved. The main purpose of test suite reduction is to deduce increased number of test cases that in turn increase the time and cost involved in execution. Fault Detection is the method of identifying the faults that affect the outcome of the system either logically or syntactically. This paper focuses on the reduction of the test suite that has high fault identification rates and also incurs low cost of execution of test cases. The proposed approach includes a new parameter Fault Detection Effectiveness to identify fault rates of test suite; an algorithm for test suite reduction based on priority of requirements; a low cost framework to identify the execution of test cases with minimum budget. Thus, the proposed work defines a test suite that has high fault detection effectiveness providing maximum coverage to requirements at minimum cost of execution.