Fitch: India budget encouraging

Fitch Ratings said that India's proposed budget highlights the commitment of the new Congress-led United Progressive Alliance to increase spending on the rural, education and health sectors, while balancing this against the need to control the stubbornly high fiscal deficit.

The outlook is stable.

"While the government's plan for fiscal consolidation in the medium-term is encouraging, we are disappointed that the government did not use the opportunity presented by high growth to consolidate the public finances more aggressively," said Fitch analyst Shelly Shetty.

Fitch said it is also encouraged by the fact that the government has set a deadline for the implementation of a state level VAT which would represent a significant structural improvement that should enhance the efficiency of indirect taxes as well as boost revenues in the medium term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.