Fitch Suggest Speedy Reduction in Budget Debit

Fitch Suggest Speedy Reduction in Budget DebitFollowing the release of the Fitch's caution on Tuesday, which suggested that the UK economy is likely to suffer a financial distress in the forthcoming months, pound showed a notable dip.

It added that the economy will have to undertake a reduction in its budget debit in order to stabilize the slump in the economy and maintain the public financing.

"The scale of the UK's fiscal challenge is formidable and warrants a strong medium-term consolidation strategy - including a faster pace of deficit reduction than set out in the March 2010 Budget", it said.

The report opined that there is an urgent need of decreasing the shortfalls in the budget. This view has been supported by the Government.

Fitch argues that a number of credit ratings agencies are collectively sustaining the country's AAA rating. This is being done with the viewpoint that more mergers and acquisitions are to make way after the General Elections.

According to spokesman from the Treasury department, the Government is endorsing the idea and working in the direction of reducing the budget deficit. The idea was also appreciated at the G20 meet on the last weekend.