SINGAPORE (Standard&Poor's) March 1, 2011--India's government is likely to face a challenging year, trying to maintain economic growth, control inflation, and achieve fiscal consolidation, said Standard&Poor's Ratings Services today. India's finance minister, in releasing the annual budget, has sought to rein in inflation by capping the increase in total expenditure. The budget has also stepped up social spending to soothe the pain for the economically weaker sections. "However, we believe the government may struggle to meet its fiscal deficit target for 2011-2012 as pressure to step up spending mounts," said Standard&Poor's credit analyst Takahira Ogawa. "Unlike in the previous fiscal year, it will also not have any one-off revenues to fall back on." In
