‘Credit profile to improve if India sticks to fiscal path’
|Source: The Hitavada Date: 15 Apr 2017 08:38:50|
MOODY’S Investors Service on Friday said India’s credit profile would improve if it followed the fiscal discipline path and set up a fiscal council as recommended by the FRBM panel.
The Fiscal Responsibility and Budget Management (FRBM) Committee in its report has suggested that the fiscal deficit, which is the difference between expenditure and receipts, should be brought down to 2.5 per cent by 2022-23 from 3.2 per cent in current fiscal.
The recommendations offer a medium-term framework that focuses on fiscal consolidation, while targeting India’s debt-to-GDP ratio as a fiscal anchor, Moody’s Investors Service India Sovereign Analyst, William Foster said.