Narendra Damodardas Modi (born 17 September 1950) is an Indian politician serving as the 14th and current Prime Minister of India since 2014. He was the Chief Minister of Gujarat from 2001 to 2014 and is the Member of Parliament for Varanasi. Modi is a member of the Bharatiya Janata Party (BJP) and of the Rashtriya Swayamsevak Sangh (RSS), a Hindu nationalist volunteer organisation. He is the first prime minister outside of the Indian National Congress to win two consecutive terms with a full majority and the second to complete five years in office after Atal Bihari Vajpayee.
How fiscal multiplier amplifies government stimulus
Prime Minister Narendra Modi at 8 pm on Tuesday announced a ₹20 trillion stimulus package, which amounts to around 10% of India’s GDP.
The exact details of the package have not been released yet, but Prime Minister said there would be a focus on small and medium enterprises, labourers, farmers and the taxpaying middle class.
In other words, there is likely to be a combination of spending and tax proposals. A government stimulus traditionally has a larger effect on the economy than its actual size due to the operation of what is known as ‘the fiscal multiplier.’ Here’s how it works.
According to economic theory, particularly the ideas of John Maynard Keynes, a rise in government spending tends to cause a disproportionate effect on economic
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Cases: 46 252 513
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