Budget lacks major steps to enhance revenue to off-set spending: Moody's

Deficit target of 6.4% poses uncertainty due to pandemic risks

Global rating agency Moody’s on Tuesday said various spending initiatives in the Union government's Budget for 2022-23 (FY23) are not offset by any significant announcements related to further increasing revenue generation.

Rather, revenue-related measures in the Budget were aimed at other objectives, including fostering innovation in the startup sector; ensuring more equitable treatment for cooperatives and state government employees etc, said Christian de Guzman, senior vice president, Sovereign Risk Group, Moody’s.

In its initial comments on the Union Budget, the rating agency said the government aims to narrow the deficit to 6.4 per cent in FY23 from a projected 6.9% in FY22.