Moody's: Balance behind India's budget

Moody's Investors Service said that India's budget for 2008-2009 tries to tenuously balance short-term political imperatives with long-term developmental needs. In the run up to national elections, the budget also tries to be consistent with key fiscal targets set forth in the "Fiscal Responsibility and Budget Management Act," which was designed to underpin India's fiscal fundamentals, the agency said.

Despite the budget's populist tone and some downside risks, Moody's said its overall view is that continued revenue buoyancy could still underpin a level of fiscal performance that is consistent with incremental improvements in debt ratios.

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