Published on 17/04/2017 9:32:21 AM | Source: Dion Global Solutions Ltd
Follow FRBM recommendation to improve credit profile: Moody`s
Moody's Investors Service has said that India's credit profile would improve if it follows the fiscal discipline path and set up a fiscal council as recommended by the FRBM panel. As per reports, the Fiscal Responsibility and Budget Management (FRBM) Committee in its report has suggested that the fiscal deficit, which is the difference between expenditure and receipts, should be brought down to 2.5 per cent by 2022-23 from 3.2 per cent in current fiscal.
Commenting on the issue, Moody's Investors Service India sovereign analyst William Foster told the media, “The recommendations offer a medium-term framework that focuses on fiscal consolidation, while targeting India's debt-to-GDP ratio as a fiscal anchor.”
"An effective implementation of fiscal discipline within a framework consistent with the FRBM's recommendation and supported by the set-up of a fiscal council would point to a lower debt burden over time and would support India's credit profile," he added.