#public-debt

#public-debt

The nonpartisan Congressional Budget Office's 10-year outlook projects worsening long-term federal deficits and rising debt, driven largely by increased spending, notably on Social Security, Medicare, and debt service payments. Compared with the CBO's analysis this time last year, the fiscal outlook has deteriorated modestly. Major developments over the last year are factored into the latest report, released Wednesday, including Republicans' tax and spending measure known as the " One Big Beautiful Bill Act,"

Net zero migration (NZM) would have clear fiscal consequences for the UK economy: lower tax revenues would leave the government needing to raise taxes to close an increasing funding gap over the long-term, according to analysis contained within the National Institute of Economic and Social Research's latest quarterly Economic Outlook. Slower employment growth and a smaller tax base would reduce revenues, increasing the budget deficit by around 0.8 per cent of GDP, equivalent to approximately £37 billion in today's prices, by 2040.

The head of the British Council has this week proposed transferring the organisation's vast art collection to the UK government in a bid to offset debts of almost £200m. The collection comprises almost 9,000 British art works of the 20th and 21st centuries by artists including Lucian Freud, David Hockney, Tomma Abts and John Akomfrah. The works have no permanent gallery, with around a fifth of on display at any one time in the UK and internationally.

For the first six months of the financial year, total borrowing now stands close to £99.8bn, 13.1% higher than at the same point last year and on course to overshoot the OBR's March forecast. The rise reflects a toxic mix of high debt interest payments, still-inflated public sector wage costs, and weak tax receipts from income, property, and corporate profits. Meanwhile, sluggish GDP growth is keeping revenue subdued, even as spending on health, education, and local services remains under pressure.

The economy contracted by 0.1% in May, following a 0.3% contraction in April. Growth over the first half of the year is now expected to be modest.