Rating agency S and P ruled out a rating upgrade for India within a year while Fitch said the government's fiscal consolidation strategy spelt out in budget is “less aspiring“ than in the past.
After the budget, Moody's, Crisil and Care Ratings had red-flagged the country's delayed fiscal consolidation roadmap.
Fitch Ratings said while the budget shows this government's continued orientation on implementation of structural reforms, it could have been more ambitious on the fiscal front, especially given India's high public debt burden.
Rolling out a new fiscal consolidation roadmap, Finance Minister Arun Jaitley had said in the Budget that fiscal deficit would be brought down to 3.9% of GDP in 2015-16, and then further to 3.6% and finally to 3% by 2016-17 and 2017-18, respectively .
The finance minister had said the government would achieve the 3% fiscal deficit target by 2017-18 as against 2016-17 as it intends to increase public investment to boost growth.
After the budget, Moody's, Crisil and Care Ratings had red-flagged the country's delayed fiscal consolidation roadmap.
Fitch Ratings said while the budget shows this government's continued orientation on implementation of structural reforms, it could have been more ambitious on the fiscal front, especially given India's high public debt burden.
Rolling out a new fiscal consolidation roadmap, Finance Minister Arun Jaitley had said in the Budget that fiscal deficit would be brought down to 3.9% of GDP in 2015-16, and then further to 3.6% and finally to 3% by 2016-17 and 2017-18, respectively .
The finance minister had said the government would achieve the 3% fiscal deficit target by 2017-18 as against 2016-17 as it intends to increase public investment to boost growth.
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