Government spending in the year to September increased by a thousand percent. When you spend a thousand percent, you will likely get the same amount in inflation. The real economy in this country shrunk even by the government's own admission by 45 percent in the last five years. That means, government should have shrunk by 45 percent. Government has not shrunk by 45 percent. The formal economy is producing much less tax revenue, in order for it to pay its civil servants. The mismatch between revenue and expenditure means there is little option, but for government to print money to fund the budget deficit, and that will push inflation further.











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