Budget 2020

‘Budget deficit may rise in FY18’

Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, U.S.-based rating agency Moody’s said.

In an interview, Moody’s Investors Service VP (sovereign risk group) William Foster said the agency believes that the government’s commitment to fiscal consolidation remains and sustained growth would help it reduce debt burden.

Moody’s had last week raised India’s sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms.

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Printable version | Feb 25, 2020 9:47:16 PM | https://www.thehindu.com/business/budget/budget-deficit-may-rise-in-fy18/article20556681.ece

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