The Government will find it difficult to meet the fiscal deficit target of 3.4 per cent in 2019-20 on account on higher spending and low revenue growth, Moody’s Investors Service said.
Observing that Indian Government’s debt is “stubbornly high” as a percentage of GDP, Moody’s Investors Service Managing Director, Sovereign Risk Group, Gene Fang said it could be brought down only if the Centre sticks to the fiscal consolidation path.
Deviating from the path laid down in the Fiscal Responsibility and Budget Management (FRBM) Act, the Government has pegged the fiscal deficit for the next financial year at 3.4 per cent of GDP, as against the original target of 3.1 per cent.