Tariffs Up, Treasury Down: Why Washington’s Red Ink Matter

The U.S. federal deficit widened to $291 billion in July, a 19% year-on-year rise, despite tariff revenues tripling under Trump’s trade regime. Customs duties reached $21 billion, but were eclipsed by surging healthcare, Social Security, and debt service costs. With the year-to-date shortfall at $1.63 trillion, Washington faces a structural imbalance that tariff windfalls cannot offset. Fiscal sustainability now collides with strategic ambition, reshaping America’s capacity to fund defense, sustain alliances, and project power abroad.

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Argentina’s Fiscal Gambit: Milei’s Vetoes, Market Signalling, and the Politics of Austerity

In Buenos Aires, President Javier Milei’s veto of congressional bills to expand pensions, disability support, and moratorium extensions underscores his uncompromising libertarian agenda. By blocking spending increases while pushing symbolic measures such as banning Central Bank transfers to the Treasury and criminalising deficit budgets, Milei signals a doctrine of austerity over welfare. He frames social expansion as a threat to fiscal surplus and the peso’s stability, positioning Argentina on a collision course between economic orthodoxy and mounting public discontent.

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India’s GST Reforms: Balancing Simplification, Growth, and Self-Reliance

India is set to overhaul its Goods and Services Tax (GST) system, simplifying its multi-tiered structure into two main rates—5% for essentials and 18% for most goods, with a 40% rate on demerit products. The reforms focus on structural fixes, rate rationalization, and ease of compliance to boost consumption, support MSMEs, and attract global investment. Success will depend on managing Centre–state fiscal tensions and ensuring transparency. If implemented effectively, GST reforms could strengthen India’s self-reliance and secure stable, growth-driven development.

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