MUMBAI: Rating agency Moody's has said that the Budget will worsen India's creditworthiness. The rating agency has also expressed skepticism over the proposal to have a holding company to fund bank capitalization, stating that if the holding company raises funds through bank borrowing the capital infusion would be "fictional".
According to Moody's, the government's increased dependence on corporate taxes and vulnerability to commodity prices has weakened its credit profile. "The Budget's lack of specific policies to address these weaknesses is credit negative. In the absence of new policy initiatives during the year, it will take a combination of improved GDP growth and corporate profitability, lower global commodity prices as well as exchange rate stability to improve fiscal performance and meet the fiscal 2012-13 deficit target of 5.1% of GDP," said Moody's in a statement released here on Monday.
Along with its observation on the country's rating, Moody's has also downgraded Union Bank of India one notch on all its instruments. This comes less than a fortnight after it downgraded another public sector lender Bank of India on the grounds of borrowers coming under pressure and stressed core capital.
The Member of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Member of Parliament Local Area Development Scheme (MPLADS). Under the scheme, each MP has the choice to suggest to the District Collector for, works to the tune of Rs.2 Crores per annum to be taken up in his/her constituency.