Alongside, the Moody's report also pointed to the limited room for further fiscal stimulus, given the fact that the government has targeted to cap the fiscal deficit at 4.6 per cent of GDP in 2011-12, down from 4.7 per cent last fiscal. Turning to the rating aspect, Moody's noted that its outlook on India's 'Baa3' foreign currency government bond rating remained stable with a 'Ba1' rating on the country's local currency debt. "The outlook on the country's 'Baa3' foreign currency government bond rating is stable. The gap between the 'Baa3' foreign currency debt and 'Ba1' local currency debt ratings reflects the potential likelihood that the government could prioritise its external obligations over its domestic obligations," it said.