India's high fiscal gap a major rating constraint: S&P
The Indian government's bloated fiscal deficit and the heavy debt burden are the 'most significant rating constraints' for Standard & Poor's, the ratings agency said.
December 11, 2012 / 19:11 IST
The Indian government's bloated fiscal deficit and the heavy debt burden are the 'most significant rating constraints' for Standard & Poor's, the ratings agency said.
The current government's fiscal deficit target of 4.5 percent of the gross domestic product of 2014 may be beyond its reach, S&P said in a release on Tuesday.Also Read:Indian economy may beat expectations in 2013: Goldman SachsIndia FY13 current account deficit seen at 4.2%: NomuraWill Asian equities carry their bull run into 2013?S&P expects only modest reforms in the government's finances as well as in the public sector due to the general elections in May 2014, it said.India has a BBB-minus rating from S&P, the lowest investment grade rating among the so-called BRIC economies. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
