Moody's approve FM Chidambaram's budget plan

March 04, 2013 16:04
Moody's approve FM Chidambaram's budget plan

The Union Budget 2013 plan may have been receiving a mixed response from several communities in the nation but the international ratings agency Moody's seemed to be impressed with the decision of Indian Finance Minister P Chidambaram making the fiscal consolidation plan in the Budget which they termed as a realistic effort.

They said that this move was a credit positive for the sovereign. The fiscal deficit which would end on March 31, 2013 is over 5.2% of the GDP and a 4.8% of the GDP of the next 2014 fiscal.

Moody's in their statement mentioned that the “modest fiscal consolidation is credit positive for the sovereign because, against a backdrop of subdued GDP growth and upcoming elections, it is a realistic effort to correct India's macroeconomic imbalances," on Monday.

They added that this consolidation could be the stepping stone for monetary easing assisting in reviving the growth.

(AW- Anil)

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