Can Modi govt spend its way to growth with Rs 50,000 cr stimulus package?

Will a looser fiscal policy help the economy? BS decodes

In view of the economic slowdown, the government is reported to be open to allowing the fiscal deficit to exceed this year's target as it considers a stimulus package in the range of Rs 40,000-50,000 crore by way of increased spending.  

Growth in Asia's third-largest economy slowed to a three-year low of 5.7 per cent in the quarter that ended in June, and Finance Minister Arun Jaitley said on Wednesday that the government was looking for ways to speed it up.

However, as the government looks at "additional moves that are necessary" to arrest the economic slowdown, is attempting