Tuesday, March 5, 2013

Reaction of rating agencies for Budget 2013

Yes, Union Budget 2013 is indeed realistic. Reaction of rating agencies substantiates the fact. Moody's Investor Service said that the initiatives introduced can help meeting India's fiscal deficit target at 4.8 percent of GDP, which will pave the way for positive credit ratings. But this is an overall comment; there are issues that are challenging. Meeting the growth targets in few areas will remain challenging. The revenue and spending issue cannot be ignored as well.

So, India is all geared up for an economic growth revival. According to reaction of rating agencies such as Moody's it was sharp spending cuts that has helped the country meet its fiscal deficit target of 5.2 percent of GDP, ending March fiscal 2013. The same commitment needs to be retained ahead.

According to Moody's, the selling of stakes in public companies was less, which led to raising of less money though at the same time budget targets being not met during the past several years.

You can read the complete article here –

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