New
Delhi: Standard and Poor's (S&P), the international
credit rating company, yesterday praised the country's
overall economic growth and external sector performance
while expressing concern over the finances of the Centre
and State Governments.
Mr
Paul A Couglin Managing Director, S&P spoke to the
press after a meeting with senior Finance Ministry officials
that in "terms of growth and external sector, it
is clearly a very positive story."
This
was more so in the context of the economy registering
a 10.4 per cent growth in the third quarter of 2003-04
and the official foreign exchange reserves crossing the
$110-billion mark.
He
however, added that the story was not so positive on the
fiscal front. "We are most concerned about the size
of the fiscal deficit, both at the Central and State Government
levels, and also the loss-making electricity sector."
Mr
Coughlin stressed that the key to sustain the current
growth momentum
was "fiscal consolidation". The combined fiscal
deficit of the Centre and States currently exceeds 10
per cent of the country's GDP.
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