Budget 2017: Achieving fiscal targets key for rating upgrade, says S&P Global

Kyran Curry, Director, Sovereign Ratings, S&P Global Ratings says the Budget 2017 illustrated government’s commitment toward improving fiscal performance. However, implementation is key and policy anchors are necessary for that, he said.

Government is committed to getting the fiscal deficit to 3 percent by 2020 and debt to GDP ratio below 60 percent by 2023 and the house is closely following if the government is on that path. Too often, governments default on fiscal targets when economic growth weakens, Curry says.

However, if Indian government manages to stick to their commitment then sovereign ratings would go up. India’s current rating stands at BBB-/A-3 with stable outlook.  

Meanwhile, he also appreciated the fact that government was focused on improving infrastructure.