The IMF’s Fiscal Monitor report warns that fiscal risks are rising, with debt increasing, interest rates higher, and spending pressures persisting across countries.

“The big picture is clear. Fiscal risks are rising, and a proper reaction is largely absent in many countries. Debt is very high and increasing. Interest rates have risen, and spending pressures are persistent across the board. And in major advanced economies, the effects of fiscal indiscipline does not stop at the border. It travels to the rest of the world,” said Rodrigo Valdes, Director of the Fiscal Affairs Department at the IMF.

The report calls for action where fiscal risks are higher, before markets force a more painful adjustment. It also examines how better taxation can support stronger growth without sacrificing revenues.