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Stimulus package funding: Govt weighs fiscal push for growth

Govt considering various steps to lift the economy

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Arup Roychoudhury
The government is considering increased spending in order to revive the economy and is open to allowing the fiscal deficit to widen beyond its target for the year. A stimulus package in the range of Rs 40,000-50,000 crore is being discussed in the government, though these figures could not be immediately confirmed.

Back-of-the-envelope calculations show that a Rs 40,000-crore increase in capital spending could lead to a fiscal deficit of 3.5 per cent of the gross domestic product, against the Budget estimate of 3.2 per cent. Assuming the budgeted total revenue figure for 2017-18 remains constant, for each additional spending