- The report also highlighted the weak prospects of fiscal consolidation.
Highlights of the Report
Fiscal Deficit
i.Moody’s has forecasted India’s fiscal deficit for FY 21 at 7.5% of GDP and 5.5% for FY 22.
ii.While the budget has projected 9.5% for FY 21 and 6.8% for FY 22.
Budget
i.As per Moody’s the focus of the budget on the high capital expenditure, financial reforms and asser sales helps to promote growth and supply broad-based credit support.
ii.But, the implementation risks will remain and the slow budgetary consolidation will limit fiscal strength over the medium term.
Recent Related News:
On September 20, 2020 Krishnamurthy Subramanian, chief economic advisor in the finance ministry, Government of India informed that as per the estimate of finance ministry, India’s nominal Gross Domestic Product(GDP) is expected to grow by 19% in FY22(2021-22) on a low base.
About Moody’s:
Headquarters– NewYork, United States
President & CEO– Robert(Rob) Fauber.