The global rating agency Moody''s on Tuesday expressed concern on India''s high fiscal deficit projection of 6.8 per cent for 2009-10. With out a clear road map for the disinvestment and structural reforms, the rating agency cautioned that the situation may become complicated.
"We remain cautious about how the government can hope to avoid complicating monetary management, without advancing structural reforms or re-prioritising expenditures or pushing for disinvestments more vigorously," Moody''s Vice President - Senior Analyst (Sovereign Risk Group) Aninda Mitra said from Singapore.
"We also recognise that this government has the political scope to formulate a robust response to emerging challenges and this is also incorporated into the stable outlook we maintain on the sovereign ratings," Moody''s said.
Moody''s said that the budget presented by the government is growth-oriented and contains a slightly larger than expected "headline deficit number" but the same is broadly consistent "with near-term stability in the government''s debt trajectory".
"We remain cautious about how the government can hope to avoid complicating monetary management, without advancing structural reforms or re-prioritising expenditures or pushing for disinvestments more vigorously," Moody''s Vice President - Senior Analyst (Sovereign Risk Group) Aninda Mitra said from Singapore.
"We also recognise that this government has the political scope to formulate a robust response to emerging challenges and this is also incorporated into the stable outlook we maintain on the sovereign ratings," Moody''s said.
Moody''s said that the budget presented by the government is growth-oriented and contains a slightly larger than expected "headline deficit number" but the same is broadly consistent "with near-term stability in the government''s debt trajectory".
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