Economists warned on Friday that Lithuania's draft 2027 budget will widen the deficit and raise public debt, while several revenue targets look ambitious. Spending is rising faster than nominal GDP, driven by social benefits, public-sector pay and automatic indexation, and the proposed 150 million euro family support package has been questioned. Excise revenue is projected to rise 11% and VAT about 7.2%, with 158 million euros of the VAT gain attributed to better tax administration, while the 2.1 billion euro corporate tax target is seen as at risk. Public debt is set to rise by 6.5 billion euros in 2027 to 48.2% of GDP by the end of the year, interest payments will climb 370 million euros, and the deficit may exceed the EU's 3% limit, possibly triggering an infringement procedure. The Finance Ministry acknowledges debt could approach 60% of GDP by the end of the medium-term period, as defence spending rises from 2% to 5% of GDP largely through borrowing.
Summary written by Upside AI from the original article. Read the source for full details.
Related news
- US Budget deficit surges 12 % to nearly $2 trillion in 2026 as debt interest , Trump tariff refunds bite
- Roundup : IMF , World Bank warn of mounting debt , divergent AI boom at Bangkok annual meetings
Speaking at the 2026 IMF and World Bank Annual Meetings in Bangkok, officials warned that rising sovereign debt, geopolitical conflict and technological disruption risk fragmenting the world economy, even as global growth holds at 3.1 percent, unchanged from the October 2025 projection. IMF Managing Director Kristalina Georgieva described a divergence between tech-led upgrades in the US, China, India and parts of Asia and sharp downgrades for economies hit by conflict and persistent inflation, urging central banks to stay restrictive and finance ministers to consolidate budgets. World Bank Group President Ajay Banga warned that 1.2 billion young people will reach working age over the coming decade, against projections of only 420 million new jobs. Thai Prime Minister Anutin Charnvirakul urged members to resist insular trade policies and to use regional groupings such as ASEAN to maintain cross-border economic ties.
- Dallas School District eyes long-term debt to deal with deficit
The Dallas School Board reviewed finances as its general fund balance fell to $10.65 million below zero at the end of the 2024-25 school year, according to the audit it ratified. PFM Financial Advisors' Melissa Maze warned that the deficit could leave the district unable to meet payments early in the year and suggested long-term debt, such as a lease-sublease financing. Four options range from $15 million to $17.5 million over 20 years, raising projected cumulative debt service from about $65.83 million to as much as $102.37 million. Maze stressed that borrowing only buys time, and the district must keep cutting costs and raising revenue after property taxes rose a cumulative 13.34% over the last three years. Superintendent Thomas Duffy said the debt would be one part of recovery, with a deal closing by January at the earliest.
- Scott Bessent's growth plans aren't enough to tame surging deficit and debt pile, IMF chief says
IMF Managing Director Kristalina Georgieva urged Treasury Secretary Scott Bessent to cut the deficit, saying growth alone cannot deliver the needed adjustments fast enough. Georgieva said Bessent acknowledges that deficits and debt have grown too high, but authorities still rely heavily on strong U.S. growth to bring them down. U.S. federal debt has exceeded 100% of GDP and public debt is above $40 trillion, while the deficit is expected to top 6% of GDP for the fiscal year, versus 5.8% in fiscal 2025. The IMF forecasts 2.3% U.S. growth in 2026 and 2027 and gross government debt of 142% of GDP by 2031, while 10-year Treasury yields hover near 5.2%, close to their highest level since 2002.
- Iowa fiscal picture improves slightly , but budget deficit remains | Iowa State Legislative News
Iowa's nonpartisan Revenue Estimating Conference projects the state will collect $8.54 billion in revenue in the 2026-27 budget year, $66 million more than its March forecast but still $1.1 billion below planned spending. This is the second straight budget year with a shortfall, largely caused by income tax cuts that took full effect in 2025, and lawmakers are using the Taxpayer Relief Fund to cover the gap until revenue catches up. Jennifer Acton cited persistent inflation, higher borrowing costs and geopolitical uncertainty around gas and diesel prices as ongoing concerns despite positive growth. Kraig Paulsen said the state has no revenue problem and expects growth to continue, and the REC will meet again in December. Republican leaders, including Gov. Kim Reynolds, called the outlook strong and stable, while Democrats Janet Petersen and Megan Srinivas criticized the deficit and said wages are not keeping pace with costs.
- US Budget Deficit Hits 5 - Year High of $1 . 99 Trillion
The U.S. budget deficit widened by more than $200 billion, or about 12 percent, to $1.99 trillion in fiscal year 2026, its highest level in five years, according to Treasury data. Federal revenues hit a record $5.4 trillion, while outlays rose 6 percent to a record $7.4 trillion, including $1.36 trillion in debt-servicing payments. Treasury Secretary Scott Bessent blamed tariff refunds, high interest rates and the nine-month-old war in Iran, and said the deficit-to-GDP ratio fell to 5.8 percent last year. The Congressional Budget Office estimated the deficit at about $2 trillion, well above the White House's $1.7 trillion forecast, and warned that market volatility could push the $40 trillion national debt higher. A Peterson Foundation survey found 92 percent of voters concerned about debt's effect on inflation, with its Fiscal Confidence Index near a two-year low of 38.
Related markets
Latest news
- Duong Son Ba Arrested, Hai Phong Thermal Power Loses Lawsuit and Must Pay VND 115 Billion to Partner
Hai Phong Thermal Power (HND) disclosed an appellate ruling in a coal supply dispute with Dan Ka Mineral, under which the court accepted the plaintiff's appeal and ordered the company to pay nearly VND 115 billion, including a coal price difference of over VND 80.15 billion and interest of over VND 34.65 billion. The dispute stems from a 2021 contract, with disagreement over price adjustments after global coal prices rose sharply in 2022. Duong Son Ba, the company's general director, was arrested on 21 May 2026 over alleged forgery of documents of an agency or organisation, and the board dismissed him from the post on 13 October, with no successor yet announced. In the first half of 2026, the company reported net revenue of nearly VND 6,081 billion, up 8%, and after-tax profit of over VND 508 billion, up nearly 25%.
- Iran threatens to use the 'father of all missiles' to strike adversaries' energy facilities
Major General Mohammad Reza Naqdi, senior adviser to the IRGC commander, said at a rally in Sari on October 18 that Iran has prepared the most advanced missiles and will respond to any aggression. He warned that energy infrastructure and investments belonging to powers Tehran deems aggressive in the region could fall within Iranian missile range. His remarks answered US President Donald Trump's threat to use the GBU-43/B MOAB, often called the 'mother of all bombs' and weighing about 14 tons, against Iran's energy infrastructure and nuclear sites. Naqdi said Iran also possesses these bombs, having seized some that failed to detonate in the 12-day war, and called Trump's impatience a 'public admission of defeat'.
- Strategy on verge of golden cross, just weeks after bitcoin flashed same bullish signal
Strategy (MSTR) is about to form a golden cross, when its 50-day average rises above its 200-day average, possibly as early as Monday, just weeks after bitcoin showed the same bullish signal. The company holds $69.81 billion in bitcoin, and its stock has had two earlier golden crosses followed by big rallies: from $15.57 in September 2020 to $127.29 by February 2021, a 717% gain, and from $25.29 on March 2, 2023 to a peak of $473.83 in November 2024, up 1,774%. The article stresses the signal is unreliable, though: since 1999 MSTR has had 19 golden crosses, and only 10 were followed by a higher price 12 months later, a 50% hit rate, with a median 12-month return of just 3.3%. The two worst cases, in 2001 and 2007, were followed by a 61% loss.
- Director of the HCMC Institute of Economics, Natural Resources and Environment: Four major corporations have raised plans to invest in Vietnam, but pulled back when asked about power capacity
At a seminar co-organized by Tien Phong newspaper and the HCMC Department of Construction on October 16, TS. Phạm Viết Thuận said the city should treat infrastructure as an integrated system rather than focusing only on transport. He argued that 11 main and 13 secondary infrastructure categories, including power, water drainage, industrial zones and logistics, need to be synchronized for the city to develop its economy. To address flooding, he proposed surveying 159 flood-prone points and building ecological lakes at major spots. He also noted that four large corporations had considered investing in Vietnam but withdrew when asked about grid power capacity. Department director Trần Quang Lâm said capital mobilization and land policy need further study, while traffic congestion, flooding and pollution remain the city’s top priorities.
- Live updates: Bitcoin tags $83,000 and slips back as chip stocks lead a rebound
Bitcoin climbed from an overnight low near $80,700 to just above $83,000 early Monday, then slipped back to about $82,400 as sellers stepped in, and was up 0.3% over 24 hours. The bounce followed tech stocks, with Nasdaq 100 futures up 1.1%, snapping a weeklong 5.5% selloff, and an ETF tracking chipmakers jumping 3%. WTI crude recovered to $98.55 after touching $96.72, as the U.S. warned citizens across 12 Middle East locations of possible flight cancellations and airspace closures, raising fears of fresh strikes on Iran and disruption at the Strait of Hormuz. In Europe, the Stoxx 600 fell 0.8% after protests in France. Bitcoin would need to move through $84,000, its ceiling on October 13 and 14, to signal that the tech rebound is lifting it too.
- Baystreet . ca - When Might October Nasdaq Correction End ?
The Nasdaq Composite (QQQ ETF) is 6.96% below its 52-week high after falling 5.52% last week, close to the 10% threshold for a technical correction. The article says high oil prices, sustained by Iran's control of traffic through the Strait of Hormuz, keep September CPI and PPI rising, and that Iran wants higher oil prices to hurt the Republican Party before the midterm elections, so the correction in beaten-down stocks may continue. CoreWeave (CRWV) lost 25.21% last week, closing just 3% above its yearly low, while bears holding a 17% short float bet its $50 billion debt is unsustainable. Nebius (NBIS) fell 25% and Twilio (TWLO) dropped 15.6%, while Autodesk (ADSK), Salesforce (CRM) and Adobe (ADBE) drew buying. The article suggests volatility may ease after the midterms.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.