London, January 14: World leaders are flocking to Davos this week to pontificate on the planet’s most pressing problems, CNN reported. Two major wars, a shipping crisis, cyberattacks on state institutions and yet more alarming evidence of the climate emergency mean there is no shortage of talking points, CNN reported.

But turning ideas into action when governments owe an unprecedented $ 88.1 trillion -- equivalent almost to the world’s annual economic output -- will be hard. Public debt exploded during the pandemic and new borrowing this year is likely to break records in several big economies, leaving governments less able to respond to shocks such as financial meltdowns, pandemics or wars, CNN reported. Modi Government to Exceed Rs 18.23 Lakh Crore Full-Year Direct Tax Collection Target, Says CBDT Chairman Nitin Gupta.

Even in the absence of a new crisis, soaring debt servicing costs will constrain efforts to tackle climate change and care for aging populations. Public services in many countries are already strained after successive budget cuts.

More worryingly still, as debt burdens grow, governments could find themselves unable to borrow more to service existing obligations and fund basic services adequately, CNN reported. Direct Tax Collection Data: India’s Gross Direct Tax Collections Record 17.6% Rise to Rs 12.37 Lakh Crore During Current Financial Year, Says Finance Ministry.

A government unable to finance its debt “would be forced to implement abrupt and painful” spending cuts or tax hikes, said Michael Saunders, a former member of the Bank of England’s monetary policy committee.

(The above story first appeared on LatestLY on Jan 14, 2024 04:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).