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S&P Global Ratings will watch the incoming Indian government's fiscal consolidation path for the next two years for a possible sovereign ratings upgrade, an analyst at the ratings agency said on... -May 31, 2024 at 04:34 am EDT - MarketScreener
The RBI on May 22 announced a record-high dividend transfer to the government equivalent to 0.6 per cent of GDP ( Rs 2.1 lakh) from its operations in FY24. The figure has surpassed the 0.3 per cent of GDP expected in the FY25 budget from February. Hence, the rating agency said that it will aid the authorities in meeting near-term deficit reduction goals.
S&P Global Rating suggests India could improve its rating if it channels the record Rs 2.1 lakh crore dividend from the RBI to reduce fiscal deficit. The dividend, around 0.35% of GDP, could aid fiscal consolidation, potentially supporting a faster path to reducing the deficit and boosting India's creditworthiness.
The interim budget presented in Parliament earlier in the year targets a fiscal deficit of 5.1 per cent of the GDP.
PETALING JAYA: S&P Global Ratings forecast a 9% rebound in the Malaysian ringgit by the end of the year, and said the weak currency doesn’t pose a risk to the sovereign rating.