# Fiscal Policy
Latest news and articles about Fiscal Policy
Total: 12 articles found
The Geopolitical Domino: Why a US-Iran Conflict Threatens to Unleash a 'Serial Shock' on the American Economy
As tensions between the US and Iran escalate in May 2026, economists warn of a 'serial shock' to the American economy driven by surging energy prices and fiscal strain. This potential conflict threatens to disrupt supply chains and trigger market volatility, complicating the US economic outlook.
Fiscal Reality Checks Lima's Ambition: Peru Rejects F-16 Fighter Jet Acquisition
President Balcázar has officially rejected the purchase of U.S. F-16 fighter jets, citing the severe fiscal burden they would place on the national budget. The decision defers the modernization of Peru's air fleet to the next administration, prioritizing domestic spending over high-cost defense acquisitions.
China’s Fiscal Recovery Stumbles Forward as Industrial Stabilisation Drives Modest Tax Gains
China reported a 2.2% increase in Q1 tax revenue, totaling 4.85 trillion yuan, led by a 4.9% rise in VAT. The figures suggest a stabilization in industrial activity but highlight a slow overall fiscal recovery compared to broader economic targets.
Beijing Imposes Lifetime Liability to Curb Wasteful State Investment and Local Debt
The Chinese State Council has introduced a landmark reform to the investment approval system, mandating lifetime accountability for officials to prevent wasteful spending and local debt. The guidelines aim to tighten oversight on state-owned enterprises while streamlining bureaucracy to attract private investment in infrastructure.
Austerity in the Ranks: UK Military Scrambles to Close £3.5 Billion Funding Gap
The UK Ministry of Defence has ordered military leaders to find £3.5 billion in savings this year as current budgets fail to cover existing plans. Amid delays to a major 10-year investment strategy, the Army, Navy, and Air Force face significant pressure to cut costs while maintaining operational readiness.
China’s Subway Squeeze: Why the Era of Big City Metro Expansion is Hitting the Brakes
China has significantly raised the bar for new subway approvals, forcing even major tier-one cities to scale back their expansion plans. This pivot reflects a broader strategic shift toward fiscal discipline as the 'Metro + Property' financing model collapses under the weight of the real estate crisis and a shrinking national population.
China’s 3.1 Trillion Yuan Debt Binge: A Front-Loaded Gamble for the 15th Five-Year Plan
China’s local governments issued 3.1 trillion yuan in bonds in Q1 2026 to kickstart the 15th Five-Year Plan, with a heavy emphasis on infrastructure and debt-swap programs. While the front-loading has boosted short-term investment growth, a significant portion of the funds is dedicated to refinancing existing hidden debt.
The High Cost of Free Transit: China’s Aging Expressways Reach a Legal Reckoning
As China’s first generation of expressways reaches the legal 30-year tolling limit, major routes in Guangzhou and beyond are transitioning to free public use. This shift marks the end of the debt-fueled 'loan-to-build' era and highlights the fiscal challenges of maintaining a massive national infrastructure network without toll revenue.
Guns and Survival: Israel’s Coalition Staves Off Collapse with Record War-Era Budget
Israel's parliament has passed a record $271 billion budget for 2026, featuring a massive $45.3 billion defense allocation. The move secures the governing coalition's survival and avoids a snap election despite intense opposition and ongoing missile threats from Iran.
The Price of Power: Washington’s High-Intensity Conflict Risks Fiscal Exhaustion
Current U.S. military spending has reached historically high intensity levels, sparking fears of a fiscal crisis. Experts warn that any move toward a ground war would result in astronomical costs that could threaten long-term strategic stability.
Gold's Precipice: Why the 'Debasement Trade' Persists Amid a Market Meltdown
Gold prices have neared bear-market territory following a liquidity-driven sell-off sparked by the Iran conflict, yet institutional investors remain bullish on the long-term outlook. Despite massive ETF outflows and central bank selling in Turkey, analysts argue that sovereign debt issues and currency debasement will continue to support the metal's structural rise.
Beijing’s Fiscal Pivot: Centralizing Debt to Rescue Local Coffers and Revive Demand
China will issue 1.3 trillion yuan in ultra-long special treasury bonds in 2026, with over 80% of the funds directed to local governments to relieve fiscal pressure and optimize the national debt structure. The funds are primarily targeted at strategic infrastructure, industrial upgrades, and a new fiscal-financial coordination mechanism intended to stimulate domestic demand.