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Budget 2018 in line with govt's fiscal consolidation path: Moody's analyst

Moody's rates India at "Baa2" with a "stable" outlook

Reuters  |  Mumbai 

arun jaitley, budget 2018
FM Arun Jaitley outside MoF in North Block on Budget day. Photo: PTI

India's 2018/19 is in line with the government's path, a Moody's analyst said on Thursday, adding that it reinforced the credit ratings agency's recent rating upgrade for the country.

In his statement to parliament, Finance Minister Arun Jaitley set the for 2019/19 (April-March) at 3.3 percent of gross domestic product, slightly higher than expectations for 3.2 percent.

Most of the spending announced seemed to be on "productive investments" rather than 'one-time hand outs', said Joy Rankothge, Vice President of Moody's Investors Service told Reuters.

"You'll see more medium-long term benefits, again depending on how it's implemented and how it's funded," he said.

Moody's Investors Service upgraded India's sovereign credit rating for the first time in nearly 14 years in November, saying continued progress on economic and institutional reforms would boost the country's growth potential.

Moody's rates India at "Baa2" with a "stable" outlook.

 

First Published: Thu, February 01 2018. 16:25 IST
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