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FITCH SAYS RATING REVISION DEPENDS ON BOLD REFORMS

July 31, 2014



GLOBAL agency Fitch Ratings on Thursday said that it has retained the ' BBB-' sovereign rating— the lowest investment grade— on India and a revision will depend on the government's efforts to push through bold economic reforms.

The agency has also retained ' stable' outlook for the country's ratings. Fitch said that the Budget is positive of credit ratings and further revision will be dependent on the government's willingness to make difficult choices.

" India may have cleared the ground for progress on credit- supportive reforms, but the government's willingness to make difficult choices remains to be tested," Fitch said in a conference call from Hong Kong. Fitch f expects the real GDP growth at 5.5 per cent this fiscal and 6.5 per cent in FY16. The government has kept the fiscal deficit target at 4.1 per cent of GDP for this fiscal.

Q1 FISCAL DEFICIT56.1% OFBUDGETESTIMATES

Fiscal deficit in the first quarter of 2014- 15 was ` 2.97 lakh crore, or 56.1% of Budget estimates for the entire financial year Fiscal deficit for the whole fiscal has been pegged at ` 5.31 lakh crore During the April- June period of 2013- 14 fiscal, the deficit was 48.4% of Budget estimates Fiscal deficit was ` 5,08,149 crore, or 4.5% of GDP in 2013- 14, down from 4.9 per cent in the previous year


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Source: Mail Today (India)


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