SINGAPORE (Standard & Poor's) July 8, 2004--Standard & Poor's Ratings Services said the budget announced today by the Indian government (foreign currency BB/Stable/B; local currency BB+/Negative/B,) indicates its desire for fiscal prudence. The Finance Minister of the minority United Progressive Alliance government, led by the Indian National Congress party, delivered his 2004-2005 (ending March 31, 2005) budget, targeting a deficit of 4.4% of GDP, after 4.6% in 2003-2004. This is based on 7% GDP growth and 18% operating revenue growth, and the expectation of limiting total expenditure growth to 8% (excluding one-off debt swap in 2003-2004). For the medium term, the government aims to adhere to fiscal rules under the Fiscal Responsibility and Budget Management Act 2003 of reducing the
