Artha Global’s Post

ONS: Public sector finances, UK: July 2024 Interest payable on central government debt: In July 2024, the interest payable on central government debt was £7.0 billion. This was the second highest interest payable in any July since records began (for this component), in 1997.

NATIONAL DEBT INTEREST PASSES $1 TRILLION: WHAT’S NEXT? Interest payments on the U.S. national debt surged past $1 trillion in 2024, driven by rising rates and a staggering $36 trillion debt. Experts caution that without significant reforms, this figure could nearly double by 2034. The Congressional Budget Office (CBO) underscores the mounting strain on federal finances, but political barriers to spending cuts or tax hikes leave limited options. The Department of Government Efficiency aims to address the crisis with innovative solutions to curb fiscal challenges. (Sources: The Hill, CRFB, House Budget Committee) #NationalDebt #FiscalCrisis #USDebt #EconomicPolicy #CBO #CRFB #HouseBudgetCommittee #DebtInterest #GovernmentSpending #Economy #BudgetReform

Some thoughts on Fiscal debt: Some of the arguments state that higher deficit might lead to higher future taxes accordingly higher unemployment and lower growth. And the market will loose the confidence in the local government, accordingly investors will not be willing to refinance the debt and the government will default if the debt is in FCY. Also High governmental borrowing will lead eventually to higher interest rate and low private sector contribution to GDP which lead to the well known "crowding out effect" However I argue this with some of the below points: - if the debt is held by domestic citizens, the issue is overstated - if the debt is used to finance capital investment, this will lead to long term growth - Fiscal deficit may prompt needed tax reforms - Deficit wouldn't matter if Ricardian equivalence holds "if the economy is operating at less than full capacity, deficit don't divert capital away"

UK borrowing rises ahead of Budget Government borrowing rose last month, marking the third-highest September since records began in January 1993. Official figures show that borrowing - the difference between spending and tax take - reached £16.6bn, continuing a trend of overshooting official forecasts. The numbers present a challenge for the Treasury at the Budget next week as it has decided it will not borrow to fund day-to-day spending: https://lnkd.in/e2pMb7Kf #government #finance #economy #treasury #borrowing

Dawn News June 2, 2024 Public debt — both domestic and foreign — has soared like anything in recent years to Rs67.5 trillion on government borrowing needs to finance its surging budget deficit. The present public debt stock compares with its previous levels of Rs32.70tr in 2019 and Rs39.87tr in 2021. "You can’t get out of this situation without tackling fiscal deficit, and fiscal issues cannot be dealt with without effectively taxing all undertaxed and untaxed sectors of the economy and finding a solution to our energy sector problems. Nothing else will work out. Privatisation of state-owned enterprises and withdrawal of subsidies will provide temporary relief, but our need for more debt will not go away without taking care of our tax and energy sector issues",(Sayem Ali)

US going deep into a fiscal crisis? The national debt stands at 99 per cent of gross domestic product and according to the Congressional Budget Office is poised to increase to 125 per cent 10 years from now if there are no changes to current laws. Under Harris, that ratio would rise 8 percentage points to 133 per cent of GDP. For Trump, it would rise 17 percentage points to 142 per cent of GDP.

OUR RESPONSE TO THE HOUSE OF LORDS REPORT ON THE NATIONAL DEBT 🚨 Responding to the House of Lords economic affairs committee report on the national debt, John O’Connell, chief executive of the TaxPayers' Alliance, said: “Taxpayers will be horrified by the warnings that the national debt risks becoming unsustainable. “The report clearly states that the government can no longer afford to ignore the catastrophic state of the public finances, with the country rapidly approaching a cliff edge. “Ministers need to bring spending under control and start to bring down our crippling national debt." https://lnkd.in/eJZUTSV3

It’s time for tough decisions to tackle our national debt says Lords committee. The Lords Economic Affairs Committee has published a report on the UK’s national debt. The committee highlights that the UK’s national debt risks becoming unsustainable unless tough decisions are taken in this Parliament to address the major challenges the UK faces and put debt on a gradual downward path. To maintain the level and quality of public services and benefits that people have come to expect, the choice is between tax rises or the state doing less. In the report, the committee recommends: 🟥 a new fiscal framework is needed 🟥 the government should produce and publish a fully funded, coherent plan for meeting net zero targets 🟥 the OBR should publish annual progress reports which set out how the government is meeting its fiscal targets. 📄 Find out more about the committee’s recommendations to government https://lnkd.in/ehq_dn9y #HouseOfLords #Economy #Debt #Budget

April 29 (Reuters) - Poland's general government debt is forecast to rise to 60.6% of gross domestic product (GDP) in 2026 and to 63.2% in 2027, according to the finance ministry in a report published on Monday, exceeding a constitutional limit of 60%.