#fiscalpolicy — Public Fediverse posts

Is Nepal Moving Toward a Socialism-Oriented Federal State or a Capitalist Economy? A Systems-Level Reflection on Nepal’s FY 2026/27 Budget

The Constitution of Nepal defines Nepal as a “socialism-oriented federal democratic republican state.” Multiple election cycles since the Maoist insurgency suggest that democracy has matured considerably. Political parties broadly operating within the republican democratic framework have consistently remained at the center of political competition. The most recent election, following the Gen-Z movement, arguably strengthened the foundations of the republican system. Political actors advocating a return to monarchy remained on the margins and failed to translate public unrest into electoral dominance. Historically, pro-monarchy sentiment tends to gain visibility when governments fail to deliver expected outcomes. The Gen-Z movement represented perhaps the strongest expression of dissatisfaction with the status quo political order. If the Nepali public genuinely favored restoration of monarchy, that election cycle would have provided an ideal opportunity for monarchy-supporting forces to emerge as a dominant political alternative. Instead, voters largely endorsed parties committed to republican democracy, reinforcing the democratic republican trajectory of the country. Yet another constitutional question remains unresolved: while Nepal appears committed to republican democracy, is it also moving toward becoming a socialism-oriented federal state? This article adopts a devil’s advocate perspective to examine whether the latest fiscal budget advances that constitutional aspiration or whether it reflects a different economic direction.

The Budget Represents a Development-State Strategy

Viewed from a systems perspective, the budget rests on a coherent developmental logic. Its central objectives are to accelerate growth through productive investment, strengthen state capacity through reform and digitization, and attract domestic, diaspora, and foreign investment. The underlying diagnosis appears reasonable. Nepal’s challenge is not merely a shortage of money but low productivity, weak state capacity, fragmented development efforts, and bureaucratic friction. The budget attempts to connect infrastructure, energy, agriculture, tourism, technology, and investment into a more integrated economic architecture. Borrowing is presented not as a tool for consumption but as an instrument for productivity-enhancing investment. From this perspective, the budget is essentially a wager on state capacity. If government institutions become more effective, projects are completed on time, corruption is reduced, and investment translates into economic growth, then higher borrowing may be justified. Many countries such as South Korea and Vietnam that successfully modernized followed versions of this strategy. The budget therefore deserves credit for attempting to move the conversation beyond annual expenditures toward a broader development framework.

Is the Budget Fundamentally a Trickle-Down Strategy?

A central question is whether the budget’s theory of change resembles a form of trickle-down economics. Much of the strategy focuses on investment promotion, infrastructure expansion, digitization, regulatory reform, business facilitation, and productivity growth. The implicit assumption appears to be that economic growth will eventually spread throughout society through employment generation, enterprise creation, and broader economic opportunities. The concern is not whether growth is desirable. The concern is whether the benefits of growth will reach marginalized populations quickly and equitably enough. Critics may reasonably ask whether the budget places greater emphasis on investors, businesses, and the middle class than on direct improvements in the economic conditions of vulnerable communities. If economic gains remain concentrated among those already positioned to benefit from investment opportunities, the constitutional aspiration of a socialism-oriented state becomes harder to reconcile with actual policy outcomes.

Do Specific Policy Choices Reflect a Capitalist Rather Than Socialism-Oriented Direction?

Several policy signals raise broader questions about the state’s economic philosophy. First, taxes imposed on education and health services are likely to be passed on to consumers unless strong regulatory mechanisms prevent it. If the objective is to increase reliance on public education and public healthcare, improving the quality and competitiveness of those services may be a more effective first step than creating additional costs within private alternatives. Second, electricity consumption thresholds before tax appear low relative to the growing electrification of modern households. As families adopt induction cooking, electric vehicles, heat pumps, and other appliances, many middle-income households could exceed these thresholds. The result may unintentionally encourage continued reliance on gas, firewood, or other fossil-fuel alternatives. If the objective is to redirect electricity toward industrial use, expanding generation capacity may be more sustainable than discouraging household consumption.

Third, enthusiasm for data centers, AI, remote work, and digital services raises a deeper strategic question. Is Nepal building on its own long-term comparative advantages, or is it once again responding primarily to incentives created elsewhere? Nepal previously moved away from potentially transformative assets such as electric public transport systems, ropeways, and large-scale reservoir hydropower development, and  increasingly relied on labor export. The concern is not that digital industries are undesirable, but whether Nepal is repeating a pattern of chasing externally driven opportunities without a clearly articulated national development vision.

These examples create an impression that the budget may be nudging Nepal toward a model closer to contemporary market capitalism than toward the socialism-oriented framework envisioned by the constitution. Ironically, some parts of the capitalist Americas are currently witnessing renewed interest in democratic-socialist ideas and stronger social welfare policies, while Nepal appears to be emphasizing investment-led growth and market incentives.

The Real Debate may not Socialism Versus Capitalism

As the world is witnessing a renewed interest in democratic-socialist ideas and stronger social welfare, the deeper issue may not be whether Nepal is becoming socialist or capitalist country. The more important question is whether the assumptions underpinning the strategy prove correct. Several unintended consequences deserve attention. First, the key question is whether Nepal can finally convert borrowing into productive assets rather than accumulating debt without generating sufficient returns. Second, growth alone does not guarantee broad-based prosperity. The strategy assumes that gains from investment will spread through jobs, enterprise creation, and economic opportunity reaching marginalized communities. History suggests this outcome is possible but far from automatic. Third concern is about governance. The budget assumes improvements in administrative efficiency, project execution, corruption control, bureaucratic coordination, and institutional discipline. If these governance preconditions fail, borrowing could become another source of fiscal stress and public resentment rather than a catalyst for development. Fourth, the budget contains numerous concepts—corridors, processing, digitization, investment facilitation, infrastructure, tourism, and energy. Yet the overarching economic vision remains somewhat implicit. It is unclear whether these initiatives are components of a strategic coherent national development strategy or simply a collection of individually attractive policies held together by optimism rather than a clearly articulated economic vision. The assumption appears to be that combining these fragments will naturally produce prosperity, which deserves scrutiny.

The fifth concerns Nepal’s long-term development challenge. For more than four decades, billions of rupees have been invested in expanding road access into hill and mountain districts. While connectivity improved significantly, many districts continue to experience population decline as young people migrate to cities or overseas employment. Agricultural land is increasingly abandoned, wildlife pressures have intensified, and local economic opportunities remain limited. This experience suggests that infrastructure alone does not guarantee development. The more fundamental challenge may be employment generation, entrepreneurship, agricultural modernization, and innovation. A clearer budgetary focus on urban and rural entrepreneurship could potentially provide a more direct response to youth migration. Finance, training, vocational education, pilot programs, market access, digital economy initiatives, grants, loans, mentoring, and long-term support mechanisms could then function as supporting pillars around that central objective.

Finally, Nepal’s strategic location between India and China remains an underdeveloped dimension of national economic planning. The bridge-economy concept appears indirectly through investments in connectivity, energy, logistics, and regional development, but it remains insufficiently explicit. Positioning Nepal within the evolving economic geography of Asia may ultimately prove as important as any individual budget allocation.

Concluding, the budget reflects a serious attempt to accelerate growth, strengthen state capacity, and attract productive investment. Those objectives are difficult to oppose. However, important questions remain: are some policy choices moving Nepal closer to a market-capitalist model and trickle down economy than to a socialism-oriented nation; is there a sufficiently explicit economic vision connecting the many initiatives contained in the budget; can Nepal finally overcome its historic weakness in execution?The ultimate test will not be the size of the budget, the ambition of the plans, or the sophistication of the theories behind them. It will be whether the strategy creates productive employment, broad-based opportunity, stronger institutions, and a development pathway that keeps young Nepali invested in the country’s future. Efficiency can accelerate development. But democratic legitimacy, social inclusion, and long-term national purpose ultimately determine whether development becomes sustainable.

Note: This article is inspired by the article “New Team, New Budget: Nepal’s Big Development Bet [Part 1: Big Budget. Big Dreams. Big Assumptions.” published by Dr. Alok Bohora in his Substack website “Nepal Unplugged”. I was acknowledged in his successive article for contributing to the discussion. This article combines my thoughts and my synthesis of above mentioned article.

Rate this:

Is Nepal Moving Toward a Socialism-Oriented Federal State or a Capitalist Economy? A Systems-Level Reflection on Nepal’s FY 2026/27 Budget

The Constitution of Nepal defines Nepal as a “socialism-oriented federal democratic republican state.” Multiple election cycles since the Maoist insurgency suggest that democracy has matured considerably. Political parties broadly operating within the republican democratic framework have consistently remained at the center of political competition. The most recent election, following the Gen-Z movement, arguably strengthened the foundations of the republican system. Political actors advocating a return to monarchy remained on the margins and failed to translate public unrest into electoral dominance. Historically, pro-monarchy sentiment tends to gain visibility when governments fail to deliver expected outcomes. The Gen-Z movement represented perhaps the strongest expression of dissatisfaction with the status quo political order. If the Nepali public genuinely favored restoration of monarchy, that election cycle would have provided an ideal opportunity for monarchy-supporting forces to emerge as a dominant political alternative. Instead, voters largely endorsed parties committed to republican democracy, reinforcing the democratic republican trajectory of the country. Yet another constitutional question remains unresolved: while Nepal appears committed to republican democracy, is it also moving toward becoming a socialism-oriented federal state? This article adopts a devil’s advocate perspective to examine whether the latest fiscal budget advances that constitutional aspiration or whether it reflects a different economic direction.

The Budget Represents a Development-State Strategy

Viewed from a systems perspective, the budget rests on a coherent developmental logic. Its central objectives are to accelerate growth through productive investment, strengthen state capacity through reform and digitization, and attract domestic, diaspora, and foreign investment. The underlying diagnosis appears reasonable. Nepal’s challenge is not merely a shortage of money but low productivity, weak state capacity, fragmented development efforts, and bureaucratic friction. The budget attempts to connect infrastructure, energy, agriculture, tourism, technology, and investment into a more integrated economic architecture. Borrowing is presented not as a tool for consumption but as an instrument for productivity-enhancing investment. From this perspective, the budget is essentially a wager on state capacity. If government institutions become more effective, projects are completed on time, corruption is reduced, and investment translates into economic growth, then higher borrowing may be justified. Many countries such as South Korea and Vietnam that successfully modernized followed versions of this strategy. The budget therefore deserves credit for attempting to move the conversation beyond annual expenditures toward a broader development framework.

Is the Budget Fundamentally a Trickle-Down Strategy?

A central question is whether the budget’s theory of change resembles a form of trickle-down economics. Much of the strategy focuses on investment promotion, infrastructure expansion, digitization, regulatory reform, business facilitation, and productivity growth. The implicit assumption appears to be that economic growth will eventually spread throughout society through employment generation, enterprise creation, and broader economic opportunities. The concern is not whether growth is desirable. The concern is whether the benefits of growth will reach marginalized populations quickly and equitably enough. Critics may reasonably ask whether the budget places greater emphasis on investors, businesses, and the middle class than on direct improvements in the economic conditions of vulnerable communities. If economic gains remain concentrated among those already positioned to benefit from investment opportunities, the constitutional aspiration of a socialism-oriented state becomes harder to reconcile with actual policy outcomes.

Do Specific Policy Choices Reflect a Capitalist Rather Than Socialism-Oriented Direction?

Several policy signals raise broader questions about the state’s economic philosophy. First, taxes imposed on education and health services are likely to be passed on to consumers unless strong regulatory mechanisms prevent it. If the objective is to increase reliance on public education and public healthcare, improving the quality and competitiveness of those services may be a more effective first step than creating additional costs within private alternatives. Second, electricity consumption thresholds before tax appear low relative to the growing electrification of modern households. As families adopt induction cooking, electric vehicles, heat pumps, and other appliances, many middle-income households could exceed these thresholds. The result may unintentionally encourage continued reliance on gas, firewood, or other fossil-fuel alternatives. If the objective is to redirect electricity toward industrial use, expanding generation capacity may be more sustainable than discouraging household consumption.

Third, enthusiasm for data centers, AI, remote work, and digital services raises a deeper strategic question. Is Nepal building on its own long-term comparative advantages, or is it once again responding primarily to incentives created elsewhere? Nepal previously moved away from potentially transformative assets such as electric public transport systems, ropeways, and large-scale reservoir hydropower development, and  increasingly relied on labor export. The concern is not that digital industries are undesirable, but whether Nepal is repeating a pattern of chasing externally driven opportunities without a clearly articulated national development vision.

These examples create an impression that the budget may be nudging Nepal toward a model closer to contemporary market capitalism than toward the socialism-oriented framework envisioned by the constitution. Ironically, some parts of the capitalist Americas are currently witnessing renewed interest in democratic-socialist ideas and stronger social welfare policies, while Nepal appears to be emphasizing investment-led growth and market incentives.

The Real Debate may not Socialism Versus Capitalism

As the world is witnessing a renewed interest in democratic-socialist ideas and stronger social welfare, the deeper issue may not be whether Nepal is becoming socialist or capitalist country. The more important question is whether the assumptions underpinning the strategy prove correct. Several unintended consequences deserve attention. First, the key question is whether Nepal can finally convert borrowing into productive assets rather than accumulating debt without generating sufficient returns. Second, growth alone does not guarantee broad-based prosperity. The strategy assumes that gains from investment will spread through jobs, enterprise creation, and economic opportunity reaching marginalized communities. History suggests this outcome is possible but far from automatic. Third concern is about governance. The budget assumes improvements in administrative efficiency, project execution, corruption control, bureaucratic coordination, and institutional discipline. If these governance preconditions fail, borrowing could become another source of fiscal stress and public resentment rather than a catalyst for development. Fourth, the budget contains numerous concepts—corridors, processing, digitization, investment facilitation, infrastructure, tourism, and energy. Yet the overarching economic vision remains somewhat implicit. It is unclear whether these initiatives are components of a strategic coherent national development strategy or simply a collection of individually attractive policies held together by optimism rather than a clearly articulated economic vision. The assumption appears to be that combining these fragments will naturally produce prosperity, which deserves scrutiny.

The fifth concerns Nepal’s long-term development challenge. For more than four decades, billions of rupees have been invested in expanding road access into hill and mountain districts. While connectivity improved significantly, many districts continue to experience population decline as young people migrate to cities or overseas employment. Agricultural land is increasingly abandoned, wildlife pressures have intensified, and local economic opportunities remain limited. This experience suggests that infrastructure alone does not guarantee development. The more fundamental challenge may be employment generation, entrepreneurship, agricultural modernization, and innovation. A clearer budgetary focus on urban and rural entrepreneurship could potentially provide a more direct response to youth migration. Finance, training, vocational education, pilot programs, market access, digital economy initiatives, grants, loans, mentoring, and long-term support mechanisms could then function as supporting pillars around that central objective.

Finally, Nepal’s strategic location between India and China remains an underdeveloped dimension of national economic planning. The bridge-economy concept appears indirectly through investments in connectivity, energy, logistics, and regional development, but it remains insufficiently explicit. Positioning Nepal within the evolving economic geography of Asia may ultimately prove as important as any individual budget allocation.

Concluding, the budget reflects a serious attempt to accelerate growth, strengthen state capacity, and attract productive investment. Those objectives are difficult to oppose. However, important questions remain: are some policy choices moving Nepal closer to a market-capitalist model and trickle down economy than to a socialism-oriented nation; is there a sufficiently explicit economic vision connecting the many initiatives contained in the budget; can Nepal finally overcome its historic weakness in execution?The ultimate test will not be the size of the budget, the ambition of the plans, or the sophistication of the theories behind them. It will be whether the strategy creates productive employment, broad-based opportunity, stronger institutions, and a development pathway that keeps young Nepali invested in the country’s future. Efficiency can accelerate development. But democratic legitimacy, social inclusion, and long-term national purpose ultimately determine whether development becomes sustainable.

Note: This article is inspired by the article “New Team, New Budget: Nepal’s Big Development Bet [Part 1: Big Budget. Big Dreams. Big Assumptions.” published by Dr. Alok Bohora in his Substack website “Nepal Unplugged”. I was acknowledged in his successive article for contributing to the discussion. This article combines my thoughts and my synthesis of above mentioned article.

Rate this:

History meets fiscal reality this Friday! Chief Minister V D Satheesan is all set to present the UDF government's maiden state budget on June 19. While the CMO promises an "empathy-first" financial plan building on recent pay hikes for welfare workers, economists warn of incredibly tight fiscal space. https://english.mathrubhumi.com/news/kerala/kerala-budget-will-empathy-or-debt-define-cm-satheesans-maiden-financial-plan-on-june-19-vhvpastu?utm_source=dlvr.it&utm_medium=mastodon #KeralaBudget #VDSatheesan #KeralaPolitics #UDFKerala #FiscalPolicy

ALBANESE’S BUDGET SHIELDED BY DEFENSIVE POSTURE

Prime Minister Albanese's handling of the federal budget is criticized for defensiveness, impacting how fiscal measures are understood by the public.

#AlbaneseBudget, #FiscalPolicy, #AustralianPolitics, #Budget2026, #CommunicationStrategy

https://newsletter.tf/albanese-budget-communication-criticism-defensiveness/

The Prime Minister's public appearances show signs of strain, with short answers and dismissive tones when questioned about the budget.

#AlbaneseBudget, #FiscalPolicy, #AustralianPolitics, #Budget2026, #CommunicationStrategy
https://newsletter.tf/albanese-budget-communication-criticism-defensiveness/

EU in stagflationary trend, must not risk fiscal crisis, ministers say

By Jan Strupczewski and Francesco Canepa NICOSIA, May 22 (Reuters) – Europe’s economy is in a stagflationary trend…
#NewsBeep #News #US #USA #UnitedStates #UnitedStatesOfAmerica #Economy #Business #ECB #Energyprices #Europe'seconomy #financeministers #fiscalmeasures #FiscalPolicy #fiscalsupport #KYRIAKOSPIERRAKAKIS #TheEuropeanCommission
https://www.newsbeep.com/us/660217/

The Canada Strong Fund isn’t a sovereign wealth fund — and that’s OK
#Canada #Politics #Economy
#CanadaStrongFund #FiscalPolicy #IndustrialPolicy #PublicInvestment #EconomicPolicy #DevelopmentBank
#SovereignWealthFund
https://the-14.com/the-canada-strong-fund-isnt-a-sovereign-wealth-fund-and-thats-ok/

The Canada Strong Fund isn’t a sovereign wealth fund — and that’s OK
#Canada #Politics #Economy
#CanadaStrongFund #FiscalPolicy #IndustrialPolicy #PublicInvestment #EconomicPolicy #DevelopmentBank
#SovereignWealthFund
https://the-14.com/the-canada-strong-fund-isnt-a-sovereign-wealth-fund-and-thats-ok/

BUDGET 2026: Tensions Erupt Over Fiscal Plans, Development Deals Collapse

France's Budget 2026 plans to raise €6.5 billion from higher earners. Find out how this budget might affect younger generations and spending.

#FranceBudget2026, #NewTaxes, #FiscalPolicy, #EconomicNews, #GovernmentSpending

https://newsletter.tf/france-budget-2026-new-taxes-raise-6-5-billion/

France plans to raise €6.5 billion in Budget 2026, mainly from higher earners. This is a significant amount aimed at restructuring state spending.

#FranceBudget2026, #NewTaxes, #FiscalPolicy, #EconomicNews, #GovernmentSpending
https://newsletter.tf/france-budget-2026-new-taxes-raise-6-5-billion/

AUSTRALIA'S PURSE STRINGS PULLED TIGHT, DEBT ON THE RADAR

Australia's government plans to reduce national debt. Find out how this budget affects citizens and the economy.

#AustraliaDebt, #Budget2027, #AussieEconomy, #FiscalPolicy, #GovernmentSpending

https://newsletter.tf/australia-budget-cut-national-debt-plan/

Australia's national debt is projected to keep rising in the short term, but the government aims to lower it later. This is a change from recent spending.

#AustraliaDebt, #Budget2027, #AussieEconomy, #FiscalPolicy, #GovernmentSpending
https://newsletter.tf/australia-budget-cut-national-debt-plan/

Once again, a stark reminder of how unserious politicians such as this (anti)socialist can get about their jobs to the extent that they are willing to tolerate a brain drain that benefits friendlier states—and with that a drop in tax revenue.

https://reason.com/2026/05/04/seattles-socialist-mayor-laughs-at-wealthy-residents-leaving-to-escape-high-taxes/

#bigGovernment #fiscalPolicy #NewYork #Seattle #taxation #WashingtonState

The U.S. national debt crossed 100% of GDP this week. The coverage got it wrong in both directions. The $39 trillion gross figure overstates the immediate problem. The "it's just the government owing itself" dismissal understates the long-term one. The Fed's SOMA holdings and the Social Security trust funds are fundamentally different obligations and the standard presentation muddles both.

https://jameshoward.us/2026/05/01/the-39-trillion-number-is-wrong/

#economics #publicpolicy #nationaldebt #fiscalpolicy

The U.S. national debt crossed 100% of GDP this week. The coverage got it wrong in both directions. The $39 trillion gross figure overstates the immediate problem. The "it's just the government owing itself" dismissal understates the long-term one. The Fed's SOMA holdings and the Social Security trust funds are fundamentally different obligations and the standard presentation muddles both.

https://jameshoward.us/2026/05/01/the-39-trillion-number-is-wrong/

#economics #publicpolicy #nationaldebt #fiscalpolicy

Australia Faces Fiscal Crossroads: Gas Tax Debate Intensifies Amidst Global Volatility

Australia is debating a new 25% tax on gas exports. Find out how this could affect prices and government revenue, and what the Prime Minister's department is modeling.

#AustraliaGasTax, #ExportLevy, #EnergyPrices, #CanberraNews, #FiscalPolicy

https://newsletter.tf/australia-25-percent-gas-export-tax-debate/

Australia might add a 25% tax on gas exports. This is a big change from the current system, which some say isn't bringing in enough money from high global prices.

#AustraliaGasTax, #ExportLevy, #EnergyPrices, #CanberraNews, #FiscalPolicy
https://newsletter.tf/australia-25-percent-gas-export-tax-debate/

Middle East War to Spark Biggest Energy Price Surge in Four Years

Commodity prices forecast to rise by 16% this year, fueling inflation and slowing growth WASHINGTON, April 28, 2026—Energy prices are projected to surge by 24% this…
#NewsBeep #News #Economy #Business #economicgrowth #Energy #fiscalpolicy #Global #Infrastructure #JobsandDevelopment #MacroeconomicandStructuralPolicies #MacroeconomicsandFiscalManagement #Policy #Trade #UK #UnitedKingdom
https://www.newsbeep.com/uk/555371/

Global Debt Soars, Fueling Fiscal Reckoning Fears

Global government debt hits $111 trillion by 2025. Find out how this affects budgets and what countries might do next. Learn about higher costs and risks.

#GlobalDebt, #BudgetCrisis, #FiscalPolicy, #EconomicNews, #GovernmentSpending

https://newsletter.tf/global-debt-reaches-111-trillion-by-2025-budget-problems/

Global government debt is now $111 trillion by 2025. This is a huge amount and much higher than in past years.

#GlobalDebt, #BudgetCrisis, #FiscalPolicy, #EconomicNews, #GovernmentSpending
https://newsletter.tf/global-debt-reaches-111-trillion-by-2025-budget-problems/

Global Debt Levels Surge, Fueling Fiscal Alarms

Global public debt is now 80% of the economy and rising fast. Many countries, especially poor ones, are in trouble. Governments must act now.

#GlobalDebt, #FiscalPolicy, #EconomyNews, #DebtCrisis, #GovernmentSpending

https://newsletter.tf/global-debt-reaches-80-percent-of-economy-fiscal-worries/

Global public debt is now at 80% of the world's economy, which is a big jump from before. This means countries need to spend less and manage money better.

#GlobalDebt, #FiscalPolicy, #EconomyNews, #DebtCrisis, #GovernmentSpending
https://newsletter.tf/global-debt-reaches-80-percent-of-economy-fiscal-worries/

Pentagon's Space Ambitions Hinge on Fiscal Maneuvers

The Pentagon's ambitious space plans are hitting a fiscal roadblock, as trillion-dollar defense budgets become the new norm, but the usual budgeting tools that make them possible are no longer reliable. Can planners find a way to reconcile ambitious new programs with an uncertain budgeting process?

https://osintsights.com/pentagons-space-ambitions-hinge-on-fiscal-maneuvers?utm_source=mastodon&utm_medium=social

#DefenseBudget #FiscalPolicy #MilitarySpace #NationalSecurity #UsDefense

" Does anything central banks do really matter any more? Even for the mighty US, it is fiscal, not monetary policy, that now determines economic conditions, and the Fed is struggling to maintain its independence. And for small open economies like the UK, both monetary and fiscal policy already dance to a geopolitical tune. When Trump speaks, markets panic, and governments and central banks rush to stabilise their economies (and in some cases, ward off the bombs).

The golden age of independent central banks is over. And sovereignty is for the birds. This is the US’s imperial moment, and Trump is its Caesar Augustus."

https://coppolacomment.substack.com/p/the-irrelevance-of-central-banks

#USA #Trump #Iran #Imperialism #CentralBanks #FiscalPolicy #MonetaryPolicy

" Does anything central banks do really matter any more? Even for the mighty US, it is fiscal, not monetary policy, that now determines economic conditions, and the Fed is struggling to maintain its independence. And for small open economies like the UK, both monetary and fiscal policy already dance to a geopolitical tune. When Trump speaks, markets panic, and governments and central banks rush to stabilise their economies (and in some cases, ward off the bombs).

The golden age of independent central banks is over. And sovereignty is for the birds. This is the US’s imperial moment, and Trump is its Caesar Augustus."

https://coppolacomment.substack.com/p/the-irrelevance-of-central-banks

#USA #Trump #Iran #Imperialism #CentralBanks #FiscalPolicy #MonetaryPolicy

Premiers' Spending Unaffected by Inflationary Pressures

See why Australian state premiers are spending a lot of money even though prices are going up in 2024. Who is affected and what happens next?

#AustralianPolitics, #StateBudgets, #Inflation, #EconomicNews, #FiscalPolicy

https://newsletter.tf/australian-premiers-spending-high-inflation/

State premiers are spending more money in 2024, even with high inflation. This is different from what many people expected.

#AustralianPolitics, #StateBudgets, #Inflation, #EconomicNews, #FiscalPolicy

https://newsletter.tf/australian-premiers-spending-high-inflation/

The Trump-era Department of Government Efficiency's radical budget cuts have stalled, with Congress passing only $9 billion—far short of the envisioned massive $2 trillion trims. Trump’s focus shifted away, and recent signals suggest no additional large-scale cuts are likely, especially with narrow GOP control and bipartisan resistance. Trump himself criticized the chaotic downsizing, calling for a more measured approach. Rep. Tim Burchett, tasked to push further cuts, admits he’s fighting an uphill battle and questions whether his party fully supports such drastic reductions. This saga reminds us of the scam perpetrated on Trump supporters and the American people. What failure looks like: https://www.cnn.com/2026/02/12/politics/they-put-me-on-there-to-die-conservatives-unleash-on-gops-failures-to-carry-out-doge-cost-cutting #BudgetBattles #GOP #GovernmentEffficiency #FiscalPolicy #Congress #FederalWorkers

The Trump-era Department of Government Efficiency's radical budget cuts have stalled, with Congress passing only $9 billion—far short of the envisioned massive $2 trillion trims. Trump’s focus shifted away, and recent signals suggest no additional large-scale cuts are likely, especially with narrow GOP control and bipartisan resistance. Trump himself criticized the chaotic downsizing, calling for a more measured approach. Rep. Tim Burchett, tasked to push further cuts, admits he’s fighting an uphill battle and questions whether his party fully supports such drastic reductions. This saga reminds us of the scam perpetrated on Trump supporters and the American people. What failure looks like: https://www.cnn.com/2026/02/12/politics/they-put-me-on-there-to-die-conservatives-unleash-on-gops-failures-to-carry-out-doge-cost-cutting #BudgetBattles #GOP #GovernmentEffficiency #FiscalPolicy #Congress #FederalWorkers

Nikki Haley Says Many People Don't Feel Hopeful About the Economy

https://newsletter.tf/haley-economy-trump-republican-fiscal/

Nikki Haley says people are not feeling hopeful about the economy, even if the stock market is doing well. She talks about the economy during Donald Trump's time as president.

#NikkiHaley, #Economy, #DonaldTrump, #Republicans, #FiscalPolicy

Nikki Haley Critiques Trump-Era Economy, Raising Questions About Republican Fiscal Stance

https://newsletter.tf/haley-economy-trump-republican-fiscal/

Nikki Haley shared concerns that people are not feeling hopeful about the economy, which could hurt the Republican party in elections.

#NikkiHaley, #Economy, #DonaldTrump, #Republicans, #FiscalPolicy

Nikkei jumps to record high after PM Takaichi’s victory

Japanese stocks surged to all-time highs following Prime Minister Sanae Takaichi's election victory, with markets responding to her pledge of 'responsible, proactive' fiscal policy. #sanaetakaichi #japanelection #nikkei #fiscalpolicy #taxrelief #investorconfidence #markets #News #Reuters #Newsfeed Read the story here: 👉 Subscribe: Keep up with the latest news from around the world: Follow Reuters on Facebook:…

https://fllics.com/en/video/nikkei-jumps-to-record-high-after-pm-takaichis-victory/

#Fed #Powell #FiscalPolicy #FederalReserve #Trump #Authoritarianism #FascistCreep

https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm

What if we taxed what people spend, not what they earn?
#Business #Economy #Taxation #IncomeTax #TaxReform #ProgressiveTax #ConsumptionTax #Economics #Saving #FinancialSecurity #WealthDistribution #FiscalPolicy #EconomicGrowth #IncomeInequality #The14
https://the-14.com/what-if-we-taxed-what-people-spend-not-what-they-earn/

Pakistan seeks IMF approval for proposed tax relief package

https://web.brid.gy/r/https://dailytimes.com.pk/1414317/pakistan-seeks-imf-approval-for-proposed-tax-relief-package/

Why does the right always increase #debt itself while blaming the left for ”unresponsible” #fiscalpolicy while it is out of power?

The answer is simple, and you should have seen it by now: LIES.

Those who yearn for inequality see the world differently. Cheating is honorable in that world, if you do it to benefit yours while hurting the other.

The left yearns for equality. That’s why they will take the right at it’s word. The right considers that weak. You need to learn & see that distinction.

Are the UK's investment problems linked to the fiscal uncertainty of six monthly budgets & a equally frequent shifts in five year forward projections?

Gita Gopinath (writing in the FT & ex-IMF) suggests that a move to a single fiscal event/budget a year would aid stability & (we might conclude) underpin more willingness to invest by lessening uncertainty around the fiscal environment.

Annual budgets are widespread, with the UK an outlier, so perhaps time to change?

#FiscalPolicy #investment

Treasury Chief Scott Bessent Says Markets Prove Critics Wrong After Policy Wins - TLDR:

S&P 500 trades near record highs as Scott Bessent says policy results defied “... - https://blockonomi.com/treasury-chief-scott-bessent-says-markets-prove-critics-wrong-after-policy-wins/ #cryptoinvestors #marketanalysis #fiscalpolicy #scottbessent #stockmarket #bondmarket #us-economy #inflation #treasury #finance #s&p500

Quebec since 1995: decline or progress?
#Quebec #Canada #Economy #FiscalPolicy #Poverty #PublicFinance #Demographics #SocialEquality #Taxation #Healthcare #Progress #Inequality #Housing #Sustainability #QuebecReferendum #EconomicGrowth #PublicPolicy
https://the-14.com/quebec-since-1995-decline-or-progress/

Day 23 of the Trump/Republican shutdown - and the Republican national debt.

- GOP led House of Representatives remains in hiding
- Trump is tearing down a significant portion of the White House after having trashed the Oval Office.
- US Republican debt hits $38 trillion (that’s 38,000 billion dollars)

The US national debt in 1980 was $908 billion.

The $38 trillion debt is directly due to Republican fiscal policy since 1980, the year Ronal Regan (GOP) was elected.

45 years of Republican tax cuts for the rich and corporations is a primary reason for the US debt.

GOP economic policies have failed. They failed to achieve any stated goal they were enacted to address.

#Politics #Economics #Trump #GOP #Shutdown #Shutdown2025 #NationalDebt #USDebt #FiscalPolicy

The Trader in Me is Nervous About Fed Rate Cut Talk. Here’s Why: Godbole - Yes, you read that right. The growing chatter of fresh Federal Reserve rate cuts is makin... - https://www.coindesk.com/opinion/2025/08/26/the-trader-in-me-is-nervous-about-fed-rate-cut-talk-here-s-why-godbole #u.s.federalreserve #fiscalpolicy #jeromepowell #opinion

"You might ask: is it really such a bad thing that a handful of people contribute less than they should?

The case for taxation is often framed as a matter of redistribution: taxing the rich to help the poor. However, there's another aspect to consider — we're missing out on the resources necessary to build the society we want to live in. According to Gabriel Zucman’s proposal, a tax on billionaires could raise up to $250 billion annually, funds that could be invested in critical public goods like healthcare, clean energy, and infrastructure.

And there’s an even more concerning consequence of uncontrolled wealth inequality: the (political) influence of untaxed wealth.

Rich individuals like Elon Musk can buy influential media platforms and other assets, consolidating their power and making it harder to challenge their influence. This concentration of power in the hands of a few undermines democratic processes.

Finally, when the wealthiest don’t carry their fair share of the burden, public trust in tax systems erodes. Why would anyone pay taxes when the ultra-rich barely do? This so-called ‘tax morale’ is a fragile thing, and when the system is perceived as unfair, it weakens the very foundation of social cohesion."

https://www.moralambition.org/stories/tax-fairness-explainer

#Taxes #FiscalPolicy #Inequality #TaxEvasion

""Recent studies suggest that public policy in established democracies mainly caters to the interests of the rich and ignores the average citizen when their preferences diverge. I argue that high-income taxation has become a clear illustration of this pattern, and I test the proposition on a least likely case: Norway. I asked Norwegians to design their preferred tax rate structure and matched their answers with registry data on what people at different incomes actually pay in tax. I find that within the top 1 per cent, tax rates are far below (by as much as 23 percentage points) where citizens want them to be. A follow-up survey showed that this divergence is entirely driven by capital incomes being taxed too low. My results suggest that even in a reasonably egalitarian society like Norway, the rich get away with paying considerably less in tax than what people deem fair."

https://www.cambridge.org/core/journals/british-journal-of-political-science/article/taxing-the-1-per-cent-public-opinion-vs-public-policy/0957CE1B22A25330BB7F5C87FE998F73

#FiscalPolicy #Taxes #PublicOpinion #Inequality #PublicPolicy #PublicOpinion

Q. could a revived Department of Economic Affairs be the solution to the domination of the Treasury mindset?

Certainly it proved to be a corrective in the 1960s, before the Treasury managed to regain the power it had lost to the DEA.... but perhaps a Labour Govt. could again dilute the Treasury's influence over fiscal policy. The problem is it look unlike to be this Labour Govt.

#FiscalPolicy #economics

https://observer.co.uk/news/opinion-and-ideas/article/could-a-powerful-chancellor-rewire-the-treasury-brain

Erin Doherty explores the heated debate over President Trump's budget bill, looming to add $2.4 trillion to the national debt. While bipartisan pushback emerges, GOP figures like Ron Johnson deem it "grotesque" and "immoral," and even Elon Musk calls it a "disgusting abomination." With pressure for swift passage, Trump aims for quick finalization by July 4. Read more about the implications of this controversial proposal. https://www.cnbc.com/2025/06/04/trump-tax-bill-debt.html #Trump #BudgetBill #NationalDebt #CBO #ElonMusk #Republicans #Congress #FiscalPolicy

What is modern monetary theory? An economist explains how it could help Canada
#Canada #ModernMonetaryTheory #CanadaEconomy #PublicSpending #FiscalPolicy #EconomicJustice #Explainer #NationalDebt #Inflation #SocialJustice #MMTCanada #CurrencySovereignty
https://the-14.com/what-is-modern-monetary-theory-an-economist-explains-how-it-could-help-canada/

Erin Doherty reveals tension among Republicans over the House's budget bill facing Senate resistance. Senator Ron Johnson aims to block its progress unless amendments addressing deficit concerns are made. Speaker Mike Johnson insists on not tampering with the bill, yet fiscal conservatives argue it could result in a $3.8 trillion deficit increase. Is the proposed spending truly adequate? For more details, check the full article: https://www.cnbc.com/2025/05/25/republicans-senate-house-budget-bill-trump.html
#BudgetBill #Republicans #Senate #House #Deficit #FiscalPolicy