MacroSpark Labs

Fiscal Policy Simulator

Adjust government spending and tax rates to see the effect on GDP through the fiscal multiplier, and the resulting impact on the fiscal deficit.

Change in government spending

₹ lakh cr

Change in tax rate

1 pts

Fiscal multiplier

1.5x

The fiscal multiplier represents how many rupees of GDP each net rupee of fiscal stimulus generates. A multiplier of 1.5x means ₹1 of net fiscal impulse produces ₹1.5 of GDP.

This is a simplified educational model using illustrative elasticities/multipliers, not an official RBI/government forecasting model — figures are computed live from your inputs but should not be used for real policy decisions. Base GDP is fixed at ₹300 lakh crore and the marginal propensity to consume is fixed at 0.7 for this model.

GDP Impact at Full Effect₹-0.15 lakh cr-0.05% of base GDP

Fiscal Deficit Impact

₹-1.00 lakh cr

Fiscal Deficit as % of GDP

-0.33%

Net Fiscal Impulse

₹-0.10 lakh cr

GDP Path Over 3 Years

Baseline GDPWith Policy