Four states, the Congress was defeated from all of the government's fiscal management are also jeopardized . The global financial and rating agencies are making it difficult for the government to take control of your expenses will be . In this case, above the target of fiscal deficit is likely to prevail .
According to the international rating agency Fitch political pressure on the government fiscal deficit targets can dominate . The Government is committed to keeping within fiscal management goals . Recently it was announced a cut in government spending . But in view of elections in the next six months for the government to continue in this announcement will be difficult . Politically , the government will no longer feel the need to spend more on populist programs . It would be expected to raise the fiscal deficit .
Finance Minister P Chidambaram in the current fiscal year to 4.8 per cent of GDP deficit target was to limit it . But in seven months of the current fiscal year has reached the target of 84 per cent . Subsequently , the finance minister had proposed cuts in government spending . However , Fitch believes that it will be difficult for the government to abide by this declaration . In effect until the next government will be forthcoming .
According to the international rating agency Fitch political pressure on the government fiscal deficit targets can dominate . The Government is committed to keeping within fiscal management goals . Recently it was announced a cut in government spending . But in view of elections in the next six months for the government to continue in this announcement will be difficult . Politically , the government will no longer feel the need to spend more on populist programs . It would be expected to raise the fiscal deficit .
Finance Minister P Chidambaram in the current fiscal year to 4.8 per cent of GDP deficit target was to limit it . But in seven months of the current fiscal year has reached the target of 84 per cent . Subsequently , the finance minister had proposed cuts in government spending . However , Fitch believes that it will be difficult for the government to abide by this declaration . In effect until the next government will be forthcoming .
