FinMin officials pitch for better sovereign rating outlook with Moody’s

FinMin officials pitch for better sovereign rating outlook with Moody’s


Ministry officials and representatives of rating agency Moody’s on Tuesday discussed prospects, during which India pitched for an upgrade in its sovereign rating outlook.

Sources said the meeting was attended by Chief Economic Advisor K V Subramanian and other officers from the Department of Economic Affairs and Moody’s analyst.

The meeting is a precursor to Moody’s annual sovereign rating action.

Moody’s Investors Service had last year downgraded India’s sovereign rating to ‘Baa3’ from ‘Baa2’, saying there will be challenges in the implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position.

The outlook on the sovereign rating is negative.

During Tuesday’s meeting, Ministry officials highlighted the upward trajectory of GDP growth seen in the June 2021 quarter and also the fiscal deficit and borrowing numbers.

The Centre’s fiscal deficit in the April-July 2021 period came in at only 21.3 per cent of full-year budget estimate (BE), mainly on account of curbs on expenditure and a rise in tax and non-tax revenue collection. In the same period last fiscal, the deficit was 103 per cent of the annual target.

In line with its Budget estimates, the Centre has announced it would borrow Rs 5.03 lakh crore in the October-March period. The government had pegged its gross borrowing target for current fiscal at Rs 12.5 lakh crore in the 2021-22 Budget.

The contracted 7.3 per cent in the 2020-21 fiscal. In the April-June quarter of current fiscal, the economy grew 20.1 per cent.

Moody’s has projected a 9.3 per cent growth in the current fiscal ending March 2022. For the calendar year 2021, Moody’s has cut growth estimate sharply to 9.6 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *