Official figures reveal that a nation’s government borrowed more than anticipated in the past fiscal year, escalating pressure on its public finances. This rise in borrowing, the difference between expenditure and tax revenue, amounted to a significant increase compared to the previous year.

These figures emerge as the nation’s finance minister is set to pursue a potential trade agreement with a major global economic power in order to mitigate the impact of impending import tariffs on its exports. The increased borrowing has fueled expectations that the finance minister might need to implement spending cuts or tax increases later in the year to adhere to self-imposed fiscal rules.

Government officials have reiterated their commitment to responsible fiscal management. However, economic analysts suggest that the borrowing overshoot, even before the full effects of potential tariffs are felt, increases the likelihood of future tax hikes. Sluggish economic growth and higher interest rates on government debt have further compounded these challenges.

An influential global financial organization has also lowered its growth forecast for the nation, citing the impact of tariffs, rising inflation, and increased borrowing costs. The government has emphasized economic growth as a top priority, but these factors pose significant headwinds.