{Education} Article: Problem, Reason and Solution for Indian Fiscal Deficit
- The government has outlined the strong fundamentals of the economy and
said it was committed to rein in fiscal deficit within the target of
5.3% of gross domestic product.
- The government is battling hard to avert a ratings downgrade from the rating agencies like Moody or S&P and has
taken a series of measures to demonstrate its commitment to economic
reforms.
- Finance Minister had a meeting with the officials of Moody. The meeting comes a day after another ratings agency Fitch
cautioned that a loosening in fiscal policy ahead of the 2014
elections could further weaken India's public finances and put pressure
on ratings.
- It also warned that policy slippage or mounting evidence of a structural
decline in the trend growth rate, such as protracted weak economic
data, could cause the ratings to be downgraded.
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