SINGAPORE (Standard & Poor's) Feb. 28, 2005--Standard & Poor's Ratings Services said India's (BB+/Stable/B) budget for 2005/2006 delivered today in New Delhi shows a lack of success in reducing the country's deficit burden. "Government debt is the main obstruction in the path of further improvements in India's credit ratings, and stands out in contrast to the many positive economic indicators displayed by India in recent years," said Standard & Poor's credit analyst Ping Chew, Singapore-based head of Asia Sovereign and International Public Finance Ratings Group. The combined central and state government deficits will amount to 10% of GDP in the near term, leading the consolidated debt of the central and state governments to rise gradually for the next few years
