India’s rating shouldn’t come under pressure due to higher deficit: DEA Secy
He hoped that the global rating agencies would retain India's sovereign rating at the existing levels.
New Delhi: India’s sovereign rating should not come under pressure due to surge in fiscal deficit which was mainly on account of higher expenditure to deal with the COVID-19 pandemic, said Economic Affairs Secretary Tarun Bajaj.
He hoped that the global rating agencies would retain India’s sovereign rating at the existing levels.
As per the latest Budget numbers, India’s fiscal deficit is estimated to be 9.5 percent of the GDP in the current fiscal and is expected to come down to 6.8 per cent in 2021-22 beginning April 1.
As a result of the impact of the pandemic on the economy, there was moderation in tax collection and an increase in government expenditure resulting in higher borrowing of Rs 12.8 lakh crore from the market.
“Our recovery is faster than in the Western world. The Budget projects a nominal GDP growth rate of 14.5 per cent,” Bajaj said. “They should look at our Budget and the reforms the government has undertaken. The government will engage with them and explain the numbers. We hope that they retain the ratings,” Department of Economic Affairs secretary said.
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