The Indian government is likely to cap its overall spending on coronavirus-related relief at around Rs 4.5 trillion ($60 billion) because of concerns that excess spending could trigger a sovereign rating downgrade, two senior government officials said. “We have to be cautious as downgrades have started happening for some countries and rating agencies treat developed nations and emerging markets very differently,” the first official told Reuters.

On Tuesday, Fitch warned India’s sovereign rating could come under pressure if its fiscal outlook deteriorates further as the government tries to steer the country through the coronavirus crisis.

“We have done 0.8 per cent of GDP, we might have space for another 1.5-2 per cent of GDP,” the official, who is involved in preparing the package said, referring to the Rs 1.7 trillion outlay that the government announced in March that was directed at helping the poor via cash transfers and food grain distribution.