(Bloomberg) -- India seeks to narrow its budget deficit to below 6% of gross domestic product for the first time since the year ended March 2020, even as it plans to boost capital spending to support growth.

The government targets a budget shortfall equivalent to 5.9% of GDP in the year beginning April, which is smaller than the 6.4% level in the current year, Finance Minister Nirmala Sitharaman said, as she presented the annual budget in New Delhi Wednesday.

The government is pressing ahead with putting the fiscal house in order, as it’s key to winning higher credit score from ratings companies and keeping investor faith in the economy. India is currently rated at the lowest investment grade by all three main credit rating companies.

--With assistance from Anup Roy.

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