Moody's says India's food subsidy bill 'credit negative'
MUMBAI (Reuters) - India's plan to provide cheap grains to the poor is credit negative and will exacerbate the government's weak finances, Moody's Investors Service said in a statement on Thursday.
"The measure is credit negative for the Indian government because it will raise government spending on food subsidies to about 1.2 percent of GDP per year from an estimated 0.8 percent currently, exacerbating the government's weak finances," Moody's said in a statement on August 29.
Moody's currently has a "Baa3" sovereign rating on India, or its lowest investment-grade rating, with a "stable" outlook.
The Lok Sabha approved a plan worth nearly 1.35 trillion rupees on Monday to provide cheap grain to the poor, a key part of the ruling Congress party's strategy to win a straight third term.
(Reporting by Neha Dasgupta; Editing by Rafael Nam)
- Tweet this
- Share this
- Digg this
- Trade deal seen 'very close', India makes WTO sweat
- Exit polls see gains for BJP in state elections
- Study casts doubt on whether extra vitamin D prevents disease
- Delhi's rubble-strewn Connaught Place mirrors Congress' election struggle
- U.S. television, Twitter, alive with new version of 'Sound of Music'
Ministers from nearly 160 member countries of the World Trade Organisation entered a final day of negotiations on Friday with officials sounding optimistic over chances of salvaging a deal that would save the trade body from sliding into irrelevance. Full Article