S038;P praises lower deficit

Ratings agency Standard and Poors S038;P said on Wednesday India8217;s lower-than-expected federal fiscal deficit of 4.11 per cent of GDP in the 2004/05 fiscal year was 8220;encouraging8221;, though it was too early to look at an upgrade.

8220;The data is encouraging from the Central government8217;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,8221; said Ping Chew, S038;P8217;s Singapore-based ratings director by phone.

8220;Also, we do not yet have the consolidated figures for the Central and state governments, which is important.8221;