Are fiscal deficits necessarily inflationary?

Fiscal deficit is defined as the excess of all expenditure over total receipts net of borrowing.

Fiscal Deficits are Not necessarily inflationary.But they can be because when government increases its spending or cuts off taxes the aggregate demand in economy increases.Firms may not be able to produce enough to meet the demand at an on-going price.They may instead increase the price to control or accomodate the demand.This increase in price may lead to inflation.But this not necessary if proper fiscal policies are undertaken by the government and the problem of inflation can be avoided.

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No the fiscal deficit is not necessarily inflationary.
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