Question

fiscal deficit is not necessarily inflationary in nature give reasons ​

Answer 1

Ello user !!!!!!!

Here is your answer,

===================================================

The term fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing).

Such borrowing are generally financed by issuing new currency which may lead to inflation.

However, if the borrowing are for infrastructural development this may lead to capacity building and may not be inflationary.

===================================================

HOPE THIS HELPS YOUU :)

AND STAY BLESSED.

Answer 2

Answer:

The term 'Fiscal Deficit' is the difference between the government's total expenditure and its total receipts (excluding borrowing). Such borrowings are generally financed by issuing new currency which may lead to inflation. However, if the borrowings are for infrastructure! development, this may lead to capacity building and may not be inflationary.

Explanation:

i hope this will help you

please mark it as brainliest

thankyou ☺️