Budget 2018: No material impact of slippage in fiscal deficit, says Moody's

Moody's in a statement said India's budget for the fiscal year ending March 2019 strikes a balance between fiscal prudence and growth

The Budget for 2018-19 strikes a balance between fiscal prudence and growth, and a "slight" slippage in fiscal deficit has no material impact on overall economic strength.

The government has revised its 2018-19 fiscal deficit projections to 3.3 per cent of GDP and for the current fiscal to 3.5 per cent of GDP, against original targets of 3 per cent and 3.2 per cent, respectively.

"The revised fiscal consolidation path is modestly shallower than the previous roadmap, but does not fundamentally alter India's overall fiscal strength," says William Foster, Vice President-Senior Credit Officer at Moody's.

The medium-term target to reduce the central government