India is negotiating with the World Bank and ADB for approximately $2.5 billion in loans to fund urban infrastructure and job creation. This comes amid a wider budget gap due to increased subsidies for oil prices affected by Middle East conflict.
Defence Secretary John Healey has resigned, citing the government's defence spending plans as insufficient for current threats. He stated the investment plan falls short and backloads crucial support, risking force readiness and national safety.
A protest in Brussels against education spending cuts turned violent with fires, property damage, and clashes with police, despite the measures being approved by the French Community Parliament.
The OECD warns the UK faces diesel shortages, especially in rural areas, due to the Iran conflict. It forecasts modest UK growth but notes risks to energy supplies and higher food prices.
UK public sector net borrowing hit £24.3bn in April, £4.9bn higher than last year and £3.4bn above forecasts. High inflation increased pension and benefit costs, while political uncertainty and global market jitters raised debt interest payments to a record £10.3bn for April.
UK public sector net borrowing hit £24.3bn in April, £4.9bn higher than last year and £3.4bn above forecasts, driven by inflation-linked benefits and pensions. Rising debt interest payments and market jitters over the Iran war and political uncertainty are increasing borrowing costs.
Economist Saul Eslake warns ACT residents may face higher taxes and charges due to the government's sustained spending on infrastructure and services without sufficient revenue increases. The report highlights a "significant deterioration" in the ACT's fiscal position over the past decade, attributing it to "conscious policy decisions" and suggesting payroll and gambling taxes as revenue-raising options.
Economist Saul Eslake warns ACT residents may face higher taxes and charges due to the government's spending on infrastructure and services without sufficient revenue increases. He highlighted health expenditure and suggested payroll and gambling taxes as revenue options.
Rolling coverage of the latest economic and financial newsUK goverment borrowing costs have risen at the start of trading, lifted by inflation concerns and uncertainty over Keir Starmer’s future.The yield, or interest rate, on UK 30-year bonds is up around six basis points (0.06 of a percentage point) at 5.63%.The triggering of a leadership election, and a subsequent change in Prime Minister, leaves the GBP [the pound] and Gilts [UK government bonds] not only grappling with a ratcheting up of political uncertainty, but also being forced to face up to a likely more left-wing successor to Starmer.Such an outcome would, in all likelihood, lead to a substantial loosening of the ‘fiscal rules’, along with considerably higher government spending, and even higher taxes, possibly even including a manifesto breach in raising NI, VAT, or income tax. Continue reading...
SNP leader wants to ensure voices of Scotland, Wales and Northern Ireland ‘are heard loud and clear’John Swinney has said he plans to work with the nationalist first ministers in Wales and Northern Ireland in a coordinated opposition to Labour’s policies on the cost of living and UK government spending.The Scottish National party leader said he had spoken to Michelle O’Neill, the Sinn Féin first minister of Northern Ireland, on Friday night after she had called to congratulate him on his party’s “emphatic” victory in the Holyrood elections. Continue reading...
Indonesia’s economy grew 5.6 per cent during the first quarter of 2026, its fastest pace in more than three years, but analysts warn that the coming months will pose significant tests for Southeast Asia’s biggest economy. Statistics body BPS attributed the growth to robust household consumption – which made up 54.36 per cent of gross domestic product and grew by 5.52 per cent year-on-year – and a surge in government spending. Amalia Adininggar Widyasanti, head of BPS and deputy minister for...
US GDP grew 2% in Q1 2026, driven by a 10% jump in government spending and 6.4% domestic investment in AI infrastructure. However, consumer spending is slowing as the war with Iran pushes oil to $126/barrel, raising inflation expectations from 3.8% to 4.7% in one month. The Fed's Powell warned of institutional independence pressures from the Trump administration while maintaining a hold strategy.
