International credit rating agency Standard and Poor's has voiced concern over the fiscal deficit of the central and state governments even as it expressed happiness over the strong economic growth momentum.

"We are most concerned about the size of the fiscal deficit of central and state governments," a top executive of S&P said in New Delhi on Monday, adding there were however very "positive" aspects of the external sector and GDP growth.

S&P's managing director for Asia Pacific region Paul A Coughlin said fiscal consolidation was the key for sustaining the strong economic fundamentals.

He, however, expressed happiness over the improved growth -- the economy registered 10.4 per cent growth in the third quarter of 2003-04.

This is the first visit of S&P's top official to India this fiscal. He had a detailed meeting with finance ministry officials, including chief economic adviser Ashok Lahiri.

"We are obviously here to have discussion with the finance ministry. We are here to get a sense of the policy and political environment," he told reporters after his meeting with Lahiri.