R Ravimohan, MD and Region Head , S&P

On fiscal deficit number: It is too early to respond. It is one of the most critical factors that bind India’s sovereign rating. At this stage since it is more or less in the same range at it was mentioned in the interim budget, I would say our initial reaction is that it still lays within the range that was expected. Certainly we would have liked it to see some correction downwards But the articulation of the fact that Fiscal Responsibility and Budget Management act (FRBM) too is coming in October is something that we would look for and look for seeing some consolidation measures in that front. It also depends on where the GDP growth would be and also how the rest of the subsidy elements for instance the fertilizer subsidy going into the nutrient level etc are positives.

On tax receipts and capital receipts: That is little puzzling and that was one reason why I said perhaps it’s a little to early to comment but from the numbers at least the first calculation we made seem to indicate an implied growth rate of 10.5% has been taken, which maybe we have made a mistake but it does look like a fairly significant increase in the GDP, seems to have been factored in some of these numbers.