Moody's Investor's Service has lauded the fiscal consolidation plan outlined in the Union Budget, terming it as "realistic" and "credit positive". The budget for 2013-14, unveiled by P Chidambaram on Thursday, targets a fiscal deficit of 4.8% of gross domestic product in the next fiscal through higher revenues. The fiscal deficit for 2012-13 is projected at 5.2% of GDP, less than the earlier estimate of 5.3%. "This plan of modest fiscal consolidation is credit positive for the sovereign because against a backdrop of subdued GDP growth and upcoming elections, it is a realistic effort to correct India's macroeconomic imbalances," the credit ratings agency said in its assessment of the Budget on Monday. Moody's, however, said the growth assumptions may be "optimistic" and "achieving such targets will be challenging".

Source - http://economictimes.indiatimes.com