Rating agencies upbeat on fiscal consolidation plan

Global credit rating agencies have given thumbs up to the FY25 Budget, lauding the government's firm commitment to deficit reduction, with Moody's Ratings noting that the Budget is credit positive.

- SHIVA RAJORA

"Policy continuity is reflected in the government's capital spending on infrastructure, which remains around 23 per cent of total expenditure, although this is below the 24 per cent spending on interest payments. Overall, the Budget is credit positive as it is expected to keep fiscal deficits at around 4.9 per cent of GDP, lower than the 5.1 per cent of GDP announced in the interim Budget. This places the government's goal of achieving a 4.5 per cent of GDP deficit by fiscal 2025-26 within reach," Moody's Ratings said in a statement.