For Quick Alerts
For Daily Alerts

Weak Public Finances Strain India's Rating Upgrade: Fitch

By Religare

Government's reform initiatives have unlocked Indian "economy's dynamism" but weak public finances continue to remain a strain on any rating upgrade, global ratings firm Fitch said as per the PTI report.

Weak Public Finances Strain India's Rating Upgrade: Fitch
Fitch said it had on April 9 affirmed India at BBB-/Stable rating.

"Government reforms have helped to unlock the economy's dynamism. However, weak public finances continue to constrain the ratings," Fitch said in a Asia-Pacific Sovereign Overview 2Q'15 report.

"Measures to strengthen the revenue base remain lacking," it added.

In April, the ratings agency had retained India's credit outlook at 'stable' and said although dynamism was back in the economy, translation of reforms into higher growth would depend upon actual implementation.

Government aims to limit fiscal deficit to 3 per cent of the GDP by 2016-17.

While on the other hand, it is also taking steps to maximise revenue collection by various measures.

For indirect tax collection, it has taken additional measures including the Central Excise increase on diesel and petrol, increase in clean energy cess, and the withdrawal of exemptions for motor vehicles and consumer durables.

India's indirect tax collections during the first two months (April-May) of the current financial year increased to Rs 96,128 crore, from Rs 69,069 crore during the same period in 2014-15, a 39.2 per cent increase.

Read more about: fitch
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more