S&P praises lower deficit

Ratings agency Standard and Poors (S&P) said on Wednesday India’s lower-than-expected federal fiscal deficit of 4.11 per cent of GDP in the 2004/05 fiscal year was “encouraging”, though it was too early to look at an upgrade.

“The data is encouraging from the Central government’s point of view, but it is too early to consider an upgrade as for that, we have to look at how they will do this year and in future years,” said Ping Chew, S&P’s Singapore-based ratings director by phone.

“Also, we do not yet have the consolidated figures for the Central and state governments, which is important.”