SINGAPORE (Standard&Poor's) July 8, 2009--The disappointment expressed by the capital and financial markets on the Indian government's budget announcement for the fiscal year 2009-2010 (started April 1) was clear. The Bombay Stock Exchange Sensex fell 5.8%, while government bond yield increased 16 basis points and the Indian rupee depreciated 1.4% against the U.S. dollar within a day. Standard&Poor's Ratings Services maintains its view that India's high fiscal deficits are not sustainable in the medium term and if fiscal consolidation is delayed, there is a risk that the sovereign credit ratings on India (BBB-/Negative/A-3) may be lowered. Although the central government budget deficit of 6.8% of GDP for fiscal 2009-2010 (excluding below-the-line items such as oil and
