- Mr Jaitley has pegged fiscal deficit target of 3.2% of GDP for 2017-18
- This has been done to ensure higher public expenditure
- Economists had predicted a fiscal deficit of 3.3% of GDP for 2017-18
The Economic Survey, prepared by Chief Economic Advisor Arvind Subramanian, on Tuesday questioned the criteria used by international ratings agencies to rate the debt profile of different countries. In a chapter titled 'Facts About India', the Economic Survey questions biases in perception of ratings agency Standard & Poor's while rating India and China.
Earlier this month, S&P's India analyst Kyran Curry had told Reuters, "What we mainly focus on is the change in the pace of the debt accumulation and the debt stock."
Ahead of the budget, International ratings agency Moody's had said, "On the fiscal front, the government will likely remain committed to achieving its fiscal deficit target of 3.5 per cent of GDP for the fiscal year ending March 2017. However,room to reduce the deficit further to the target of 3 per cent of GDP in the following year will be limited, due to the need for increased infrastructure spending and higher government salaries."
Follow NDTV for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.
Subscribe to our YouTube channel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.