The Hutchins Center Fiscal Impact Measure shows how much local, state, and federal tax and spending policy adds to or subtracts from overall economic growth, and provides a near-term forecast of...

The Ministry of Education and Children and its agencies spent just over 123 million krónur on advertising over the past four years, with most going to domestic entities, mbl.is reports. Of the spending, 112.7 million krónur went to domestic entities and 20.6 million to foreign ones, including pur…

Turns out, Elon Musk’s pimply minions didn’t actually want to cut government spending. They wanted to get a piece of it for themselves.

The Commodity Credit Corporation gives the Secretary of Agriculture a permanent 30 billion dollar line of credit that requires no advance vote from Congress. Trade wars in 2018 and again in 2025 show the same pattern: tariffs damage farmers, the executive branch compensates them through the CCC, and Congress reimburses the account after the money is already gone.

Former federal treasurer Joe Hockey has issued a stark warning to Australians, stating that government overspending will become a 'massive household problem' for everyday citizens. His comments come just days before the Reserve Bank's next interest rate decision, adding to concerns about potential economic downturns. Hockey, who served as treasurer under the Abbott government, argued that significant economic challenges require tough spending cuts, noting that government expenditure has grown substantially since his 2014 budget. He highlighted that public service employment has increased by 50,000 people compared to 2014, with government tax and spending levels higher than ever. Hockey warned that inflation is 'locked in' and the current situation resembles the economic challenges of the late 1980s, with governments spending excessively. He stressed that no one is discussing debt reduction, which he considers critical. Hockey also shared his critical views on Donald Trump's second term, particularly regarding Russia and Ukraine, though he maintained a generally supportive stance on Trump's authenticity and moral compass. His remarks underscore growing concerns about Australia's fiscal trajectory and potential impacts on household finances ahead of the upcoming interest rate decision. The former ambassador to Washington, known for his role as 'Trump whisperer', emphasized the need for economic discipline to prevent further deterioration of the financial situation for ordinary Australians.

Former federal treasurer Joe Hockey has issued a stark warning to Australians, stating that government overspending will become a 'massive household problem' for everyday citizens. His comments come just days before the Reserve Bank's next interest rate decision, adding to concerns about potential economic downturns. Hockey, who served as treasurer under the Abbott government, argued that significant economic challenges require tough spending cuts, noting that government expenditure has grown substantially since his 2014 budget. He highlighted that public service employment has increased by 50,000 people compared to 2014, with government tax and spending levels higher than ever. Hockey warned that inflation is 'locked in' and the current situation resembles the economic challenges of the late 1980s, with governments spending excessively. He stressed that no one is discussing debt reduction, which he considers critical. Hockey also shared his critical views on Donald Trump's second term, particularly regarding Russia and Ukraine, though he maintained a generally supportive stance on Trump's authenticity and moral compass. His remarks underscore growing concerns about Australia's fiscal trajectory and potential impacts on household finances ahead of the upcoming interest rate decision. The former ambassador to Washington, known for his role as 'Trump whisperer', emphasized the need for economic discipline to prevent further deterioration of the financial situation for ordinary Australians.

The Estonian government has allocated 11 million euros towards renovating a new headquarters for the Interior Ministry, ERR reported. The project will cost 14.77 million euros, with 3.68 million euros coming from the EU Modernisation Fund. The ministry plans to move from its current headquarters …

The Sydney Morning Herald has published a series of letters from readers responding to recent economic discussions, particularly focusing on government spending cuts. Several correspondents argue that the most straightforward way to reduce government expenditure is to cancel the AUKUS security partnership with the United States and United Kingdom, which they describe as "useless" and "failed". Bronwyn Willats from Mittagong states that walking away from AUKUS would save billions, while Patrick Sutcliffe from Twin Waters suggests cutting both AUKUS and Papua New Guinea rugby league teams as potential savings. The letters also critique the Coalition's vague approach to spending cuts, noting that they have not identified specific areas to reduce spending. Instead, they point to essential services like Medicare, hospitals, education, aged care, and disability services as areas that would be harmed by cuts. The writers argue that reducing these services would shift costs onto households already struggling with the cost of living. The letters further highlight concerns about stagnant wages under previous governments, with Angus Taylor's recent comments on wage growth being described as "welcome" but "striking" given his previous role in a government where real wages stagnated. The Coalition has framed the next election as a referendum on the economy, despite its own record of weak wage growth, low productivity, and rising government debt. Shadow Treasurer Tim Wilson blames inflation on the government's "spending addiction," though the letters question how this would address global oil prices or other external economic factors. The correspondents also express frustration with the government's handling of public services, including deteriorating healthcare, underfunded public education, and housing affordability issues. One letter mentions the "hunger" crisis in Australia, with Foodbank reporting that one in three households is experiencing food insecurity. The writers call for the government to address these issues rather than focusing on vague spending cuts. The letters also touch on other topics, including protests in France and Italy related to education and cost of living, the sale of Victoria Barracks, and calls for greater civility in politics. However, the central theme across most letters is the criticism of government spending priorities and the call to cancel AUKUS as a means of reducing expenditure without harming essential services.

Reserve Bank chief economist Sarah Hunter has publicly acknowledged that government spending is contributing to capacity pressures and inflation in the Australian economy. Speaking in a pre-recorded interview with 60 Minutes, Hunter explained that increased state and federal government expenditure is driving domestic demand, which, combined with an oil shock, has pushed up costs across various sectors. This statement comes ahead of critical inflation data that could confirm a fifth interest rate hike this year. Hunter's comments suggest that monetary policy decisions will need to account for both fiscal policy impacts and external economic shocks. The Reserve Bank's focus on inflation control remains central to its mandate, with the central bank likely to maintain a cautious approach to interest rate adjustments. Market expectations have already begun to reflect these concerns, with betting markets indicating a higher probability of further rate increases. The RBA's position on government spending's role in inflation marks a significant shift in the central bank's public communication, as it has previously been more reserved about directly linking fiscal policy to inflationary pressures. This acknowledgment aligns with broader economic discussions about the interplay between government spending and price stability, particularly in the context of post-pandemic economic recovery and global supply chain disruptions. The timing of Hunter's comments is strategic, as they precede the release of key economic indicators that will inform the Reserve Bank's next policy decision. The Australian economy has been experiencing sustained inflationary pressures, with the RBA's previous rate hikes having only partially mitigated these effects. As the central bank weighs its options, the relationship between fiscal and monetary policy will become increasingly important in shaping Australia's economic trajectory. The government's spending plans, particularly in infrastructure and social programs, are now under greater scrutiny as potential contributors to ongoing inflation. This development could influence future budget planning and policy coordination between the Treasury and the Reserve Bank.

Protests in Europe have highlighted debt squeeze, with France now paying more to borrow than Italy and Greece.

The United States’ national debt has increased by nearly $400 billion in approximately two months, approaching $40.4 trillion and intensifying concerns

Iceland's finance minister, Daði Már Kristófersson, has referred questions about several security and defence spending items to the Ministry for Foreign Affairs, mbl.is reported. The items are included in a breakdown of government spending that was given to Alþingi's budget committee on Friday, a…

Washington stopped making pennies to save millions. Now businesses are improvising, consumers are rounding their change, and the replacement coin has a rather expensive secret.

France’s worst unrest in years saw thousands arrested, prompting President Macron to vow an “uncompromising” response ahead of a critical budget vote.

France’s worst unrest in years saw thousands arrested, prompting President Macron to vow an “uncompromising” response ahead of a critical budget vote.

A new CBO analysis finds that a sustained one-percentage-point increase in federal borrowing rates could push debt held by the public to 222 percent of GDP by 2056.