revenue for government

[Guest]

How currency printing generates revenue for government?If government prints more currency and uses it for developing infrastructure of India or setting up Public Sector Industries then how Inflation occurs?

[Deepak Aggarwal]

Hello, i am not economist but like these type of debates. What i understand, currency printing does not generate any revenue for govt.in any way. I think to print new notes depends on so many factors inclduing fiscal deficit. Mere printing of money and put it in circulation does not help any economy unless there are proper backup i.e.funds available with government. Back up may be in any form including gold,any sovergin fund etc. Thanks

AI Summary

Currency printing does not create government revenue; issuance depends on fiscal conditions and asset backing. The respondent states that currency printing does not, by itself, generate government revenue; issuance decisions depend on multiple macro fiscal factors including the fiscal deficit, and mere placement of new notes into circulation is not beneficial without adequate backing such as gold or sovereign funds.