SINGAPORE (Standard & Poor's) Feb. 4, 2004--Standard & Poor's Ratings Services said today that the recent mini budget announced by the Indian government (foreign currency BB/Stable/B; local currency BB+/Negative/B,) indicates a greater determination to curb fiscal deterioration. Nevertheless, the mini budget must be seen in the context of the anticipated general election as well as strong growth. The budget deficit for fiscal year 2003/2004 is estimated to reach 4.8% of GDP, from 5.4% in fiscal 2002/2003; but more importantly the deficit for fiscal 2004/2005 is boldly projected at 4.4% of GDP. Measures to meet this target include increasing tax revenue by 17.4% and limiting expenditure growth to 3.5%. While these projections are based on expectations of 8% GDP growth, it
