Revenue and Growth: Diverging Approaches in Global Fiscal Policies

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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

total issuances hitting 113.6 billion reais by September 2025

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

Former central bank governor Arminio Fraga has demanded an immediate halt

to these exemptions, labeling them as “ineffective policies.”

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

Chancellor Rachel Reeves has scrapped proposals to increase income tax rates

, 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,

affirming tax liabilities against his businesses totaling $1.8 billion

. This verdict, seen as a win for President Claudia Sheinbaum’s government, highlights the new court’s commitment to upholding fiscal responsibility.

Salinas, whose firms have been embroiled in tax disputes since the 2010s

, 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.

Finance Minister Satsuki Katayama revealed a stimulus plan surpassing $110 billion

, with a preliminary outline focusing on “ambitious and strategic” investments in artificial intelligence, semiconductors, and energy. The plan,

slated for final approval by November 21

, features subsidies for energy and fuel costs as well as increased defense funding.

Experts estimate the total could climb to $133 billion

if a supplementary budget is used for financing.

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

Nasdaq Private Market has introduced a tax calculator

in collaboration with April, allowing shareholders of private companies to project their tax obligations when selling equity. This feature,

now available on liquidity platforms

, 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.

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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