How the Budget System Can Contribute to Corruption:

Opacity and Lack of Transparency:

Complex Budgetary Processes: Beneath the apparently clear and rational system, budgeting may involve a number of susceptible and unclear steps, with little public participation/transparency. This lack of transparency can create opportunities for corruption, such as:
Misallocation of Funds: Money can be embezzled to give it or use it for other purposes in the best interest of some people.
Inflated Costs: Tenders and contracts can be obtained at exorbitant prices for the award givers and the real prices are paid by the officials in cash difference.
Kickbacks and Bribery: Corruption through bribery and kickbacks ensures that the particular agency is able to receive funds, convenience for budgeting and approving projects.
Limited Public Participation:

Lack of Citizen Input: Deficit participation in the process of formulating its budget leads to lack of accountability and can also leads to the practice of corruption.
Lack of Public Awareness: The public cannot know where their money is being used, or when and where corruption is taking place if they are not informed about the budget.
Weak Oversight Mechanisms:

Inadequate Audits: It means that weak auditing systems may not be able to pick and check cases of corruption hence making them go unreported.
Limited Accountability: Misconduct is likely to be fostered whenever there are no precautions against officials employing public funds for unauthorised purposes.
How the Budget System Can Help Prevent Corruption:

Transparency and Accountability:

Open Budget Initiatives: Budgeting for and with citizens, engagement of citizens in budgetary processes, online access to budgetary paperwork, and citizen feedback forums can help reduce corruption in budget processes.
Independent Audits: Internal auditing is very useful in financial reporting irregularities since the auditing work is done by independent agencies.
Technology-Enabled Solutions:

Digitalization: E-governance of the budget, wherein people use technology to manage their budget such as through control panels, is a better way of managing budgets since it specially eliminates the mechanisms for manual alteration.
Strengthening Institutions:

Independent Regulatory Bodies: Improvement of the functions of independent regulatory agencies might improve the monitoring and implementation of budgetary laws and policies.
Civil Society Engagement: This paper finds that active Civil Society Organization engagement in budget monitoring and advocacy can contribute to the identification and mitigation of corruption risks.

Firstly we understand how inflation measured. Inflation is measured by comparing the cost of things today with how much they cost a year ago. Rising inflation means pricing of the good and services are increasing continuously or fast change. So rising inflation can have both positive and negative impact on India’s GDP.
Positive impact depends on the economic environment, here is your answer:-

a) Rising wages: There is a tendency of producing an inflationary wage-price spiral. Employees call for increased salaries to cope with increased expenses, employers increase the prices of goods and services in order to recover increased expenses.

b) Impact on Markets: When inflation is high the stock price is thus low , while conversely the value of gold is high. lawsuit and resulted in higher interest rates.

c) Increased consumer spending: Inflation has dire consequences in that average prices of goods or service will go up. This can lead to consumer will spend more money in the present. Then more contribution to consumer spending has led to increased contribution to the GDP.

d) Increasing business investment: When prices are high there are big probabilities that many authorizations will employ more in production capabilities, hire more works. This will boost the economy.

e) Government revenue increases: When prices increase then the more revenue returns to government account through sales tax, Goods and services tax, tax deducted at source and other taxes. This revenue will in turn be used by government to construct more infrastructure in developing their project and social welfare.