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Budget fails to address fiscal constraint: Moody's

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Reuters Mumbai
Last Updated : Jan 21 2013 | 2:31 AM IST

India's Budget lacks new solutions to address the country's fiscal constraints, global rating agency Moody's Investor Service said on Monday.

"A dependence on corporate tax revenue and vulnerability to commodity prices and exchange rates weakens the government's credit profile," Moody's analysts said in a note to clients.

The Budget is credit negative for the sovereign and is mixed for banks and corporates, they wrote.

New Delhi avoided bold reforms in its annual Budget on Friday, opting for cautious steps to shore up growth and modest targets to rein in a bloated deficit after a series of political setbacks exposed its fragility.

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First Published: Mar 19 2012 | 10:38 AM IST

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