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Revenue and Growth: Diverging Approaches in Global Fiscal Policies

Revenue and Growth: Diverging Approaches in Global Fiscal Policies

Bitget-RWA2025/11/17 00:50
By:Bitget-RWA

- Brazil's tax-exempt bonds strain public finances, costing $11.3B annually amid rising issuances. - Japan unveils $110B+ fiscal stimulus for AI, semiconductors , and energy, potentially reaching $133B. - UK abandons income tax hikes, opting for threshold adjustments to address £35B budget gap. - Mexico's Supreme Court upholds $1.8B tax claims against billionaire Salinas Pliego's firms. - Global trend shifts toward targeted fiscal tools over broad tax hikes amid economic pressures.

As nations around the globe contend with economic instability, their strategies for tax reform and fiscal stimulus are diverging. From Brazil’s challenges with tax-free bonds to Japan’s aggressive spending initiatives, decision-makers are weighing the difficult balance between boosting revenue and fostering economic expansion.

Brazil’s Treasury Secretary Rogerio Ceron pointed out the increasing budgetary pressure from tax-free infrastructure bonds, which drain approximately $11.3 billion from the government each year. These bonds, which provide investors with tax-free incentives, have seen a dramatic rise in demand, with

compared to 41.1 billion reais in 2022. Ceron emphasized that although businesses enjoy short-term benefits, the government ultimately bears the cost, as higher interest rates on public debt negate any immediate advantages.
Revenue and Growth: Diverging Approaches in Global Fiscal Policies image 0
to these exemptions, labeling them as “ineffective policies.”

By contrast, the United Kingdom is retreating from sweeping tax increases due to mounting political resistance.

, choosing instead to modify tax thresholds to tackle a £35 billion fiscal gap. This decision reflects wider Labour Party worries about breaking campaign pledges, with internal disagreements stalling major choices ahead of the November 26 budget announcement.

Elsewhere, Mexico’s Supreme Court delivered a major setback to billionaire Ricardo Salinas Pliego,

. This verdict, seen as a win for President Claudia Sheinbaum’s government, highlights the new court’s commitment to upholding fiscal responsibility. , has accused the judiciary of political bias and pledged to keep contesting the rulings.

Japan, on the other hand, is moving forward with substantial fiscal stimulus.

, with a preliminary outline focusing on “ambitious and strategic” investments in artificial intelligence, semiconductors, and energy. The plan, , features subsidies for energy and fuel costs as well as increased defense funding. if a supplementary budget is used for financing.

In the United States, new tax-related solutions are gaining momentum.

in collaboration with April, allowing shareholders of private companies to project their tax obligations when selling equity. This feature, , is designed to clarify complicated tax matters for employees participating in share sales, especially during tender offers.

These shifts illustrate a worldwide pattern: governments are increasingly favoring targeted fiscal measures over broad-based tax increases. While Brazil and Mexico are tackling longstanding tax exemptions and legal battles, Japan and the UK are testing subsidies and structural reforms. As electoral cycles and economic headwinds intensify, finding the right mix between raising revenue and supporting growth will continue to be a central policy dilemma.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Bitget-RWA2025/11/17 02:26