Budget 2018 strikes a balance between growth and fiscal prudence: Moody's

Says slippage in Budget deficit target not material; fiscal consolidation path moderately shallower

Global rating agency Moody’s on Monday said Budget 2018 had struck a balance between fiscal prudence and growth. A slight slippage in the Budget deficit targets was in line with expectations and would have no material impact on the country's overall fiscal strength, Moody's added.

In the Budget, the central government revised its 2018-19 projections for the fiscal deficit to 3.3 per cent of gross domestic product (GDP) from the original target of 3 per cent. It also revised its estimate for 2017-18 to 3.5 per cent of GDP, compared with the original target of 3.2 per cent.