It doesn't make sense that the only thing "Inflation" in the game does is increase what the state has to pay. Real inflation increases the numbers in all aspects of currency: prices go up, wages go up, taxes and tariffs go up too (well, it's not the inflation doing the increasing, but the increase
is the inflation

).
When your currency has depreciated so much that you have to pay multiple times the amount you used to have to pay for an unchanged service or article it also means you should take in multiple times the amount for an unchanged service or article.
And that doesn't happen in the game, your income only increases if you actually improve your economy.