• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, July 8

India’s high fiscal deficit is not sustainable in the medium term and there is a risk that the country’s sovereign credit ratings may be lowered if fiscal consolidation is delayed, said international rating agency Standard & Poor’s.

Although the fiscal deficit of 6.8 per cent of GDP for fiscal 2009-10 was high – against 2.7 per cent recorded in fiscal 2007-08 – S&P said it was within its expectations.

But, including State Government deficits and off-balance-sheet items such as oil and fertiliser bonds, the deficit is estimated to reach about 12 per cent of GDP in fiscal 2009-10, the S&P report said.

A material deterioration in India’s strong external position could also put pressure on India ratings, the report added.

More Stories on : Credit Rating | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line