Faster pace of fiscal deficit reduction does not significantly change India’s credit profile: Fitch
New Delhi, Feb 2 (PTI) Fitch Ratings on Friday said the slightly faster pace of fiscal deficit reduction does not significantly change India’s sovereign credit profile but the government’s emphasis on deficit reduction will help to stabilise the debt-to-GDP ratio over the medium term.
In a post budget commentary, Fitch Ratings Director, Sovereign Ratings, Jeremy Zook said over the next five years, India’s government debt-to-GDP ratio would be broadly stable at just above 80 per cent of GDP. This is based on a continued path of gradual deficit reduction, as well as robust nominal growth of around 10.5 per cent of GDP.
In the interim Budget 2024-25, presented in Parliament on Thursday, the government revised lower its current year fiscal deficit to 5.8 per cent from 5.9 per cent budgeted earlier.