Fiscal Policy

Global fiscal landscapes are exhibiting varied trends, highlighting both challenges and adjustments. India's provisional fiscal accounts for FY26 reveal robust receipts and expenditure, with significant tax devolution to states, signaling continued government spending and support for regional economies. Simultaneously, the US faces a projected debt ceiling crisis in 2027, potentially triggering default risks and increased borrowing costs, underscoring long-term fiscal sustainability concerns. Further complicating the picture, the IMF has resumed engagement with Venezuela after a two-decade hiatus, initiating discussions on fiscal management and monetary policy, though debt restructuring remains off the table, reflecting ongoing economic instability in the region.