By the way, the Modi government is claiming to achieve the target of the government treasury, but it is not easy at the sight of rating agency Moody's. According to the credit rating agency Moody's Investors Service, this year is full of challenges for the Modi government.
Indeed, Moody's has reviewed the first general budget of Modi Government 2.0. Along with this, many issues of the budget have also been identified. According to rating agency Moody's, despite the budget deficit target of 2019-20, India is facing fiscal challenges. Moody's said in his Budget 2019-20 budget analysis that weak development possibilities for India will make the government's fiscal efforts difficult. The agency said, "Due to weak growth prospects, the efforts of the Indian government's fiscal consolidation may be a shock. It can also have an effect on the quality of government credit."
Let us tell you that the government has announced the full budget of 2019-20 in the Parliament last week. In this, the fiscal deficit has been estimated to be controlled at 3.3 percent during this year. Earlier, in the interim budget presented in February, the fiscal deficit was estimated at 3.4 percent. The budget also estimates the gradual decline in government debt.
However, the rating agency also said that budget announcements are positive for government banks, non-bank finance companies (NBFCs), infrastructure sector, domestic producers, etc. According to Moody's, the increase in customs duty on some imported products will increase the competition of domestic producers, while new incentives for procurement of affordable homes will be positive for Indian property developers.
