India Fiscal Position Weak as Polls Approach, Moody’s Says

India’s fiscal position remains weak and a cut in spending to meet the budget gap estimate this year will probably hurt growth, Moody’s Investors Service said.

The budget deficit will narrow to the lowest in seven years at 4.1 percent of gross domestic product through March 2015 from an estimated 4.6 percent in the current fiscal year, Finance Minister Palaniappan Chidambaram said in his budget speech yesterday. He also cut taxes on cars, mobile phones and television sets to woo voters ahead of elections due by May.