Moody's analyst says India's budget fiscally prudent, reforms key | Reuters

MUMBAI India's 2017/18 annual budget is "fiscally prudent," as it maintains the government's fiscal consolidation efforts and would lead to stable economic growth if implemented correctly, a Moody's analyst said on Wednesday.However, the ratings agency would still need to see more evidence of the effectiveness of reforms to justify a change in its ratings stance, said Marie Diron, associate managing director of the sovereign rating group at Moody's Investors Service.On Wednesday, Finance Minister Arun Jaitley presented a budget for the fiscal year beginning April 1 that increased spending on rural areas, infrastructure and fighting poverty, but keeping fiscal deficits in check.

"It is a fiscally prudent budget," Diron said in a phone interview."What would potentially lead to an upgrade would be evidence that these reforms that are being implemented are becoming gradually more effective in ensuring a stable and growth environment, and hence lower debt than currently."

Moody's rates India at "Baa3", or its lowest-investment grade, with a "positive" outlook.

(Reporting by Rafael Nam and Suvashree Dey Choudhury; Editing by Richard Borsuk)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Feb 01, 2017 13:09 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See