Govt. will be compelled to print money to bridge Budget deficit | Daily News

Govt. will be compelled to print money to bridge Budget deficit

The government will be compelled to resort to the printing of money this year to bridge the escalating Budget deficit despite claims to the contrary by Finance Minister Ravi Karunanayake, said Parliamentarian Bandula Gunawardena.

He said Commercial Banks and the Central Bank would have to bridge the Budget deficit which will further escalate with inflation caused by the appreciation of the dollar and this would eventually force the government to resort to the artificial printing of money.

The escalation of prices of goods today was no secret. That may be due to the supply and demand theory when production and supply increases prices would automatically come down. But today's high prices could not be attributed to it.

Today prices are increasing because the rupee is depreciating against the appreciation of the US Dollar.


 

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