SINGAPORE (Standard & Poor's) Feb. 28, 2006--Standard & Poor's Ratings Services said today the Indian government's (BB+/Stable/B) fiscal responsibility commitment shown in its Budget 2006/2007 should put the country's deficit reduction effort back on track. The budget envisages a lower fiscal deficit of 3.8% of GDP, compared with an estimated 4.1% in 2005/2006. Standard & Poor's believes this should help contain the combined central and state government deficits, currently estimated to be just 8%-9% of GDP. The budget forecasts a sustained strong growth of 19% in taxation revenues for the year to March 2007, from 21% in 2005/2006; it focuses on boosting spending on health, education, and rural infrastructure, and sees the implementation of further tax reforms. The government will
