Japan’s general-account tax revenues climbed 12 percent to a record ¥84.2 trillion in the fiscal year that ended in March, the sixth consecutive annual high, the Ministry of Finance reported on Friday. The ¥9 trillion jump—the largest on record—generated a surplus of ¥2.6 trillion, allowing the government to cut planned bond issuance by ¥3 trillion. In Brasília, the Ministry of Management and Innovation disclosed that federal state-owned enterprises posted a combined profit of R$169.4 billion in 2025, a 45 percent increase and the strongest result in the historical series, driven by oil and financial-sector firms. Both windfalls reflect a moment in which inflation and robust corporate earnings are temporarily expanding fiscal headroom in parts of the global economy.

Viewed from Tokyo, the revenue surge was propelled by a 19.1 percent rise in income-tax receipts—boosted by the expiry of a temporary tax cut and by wage hikes averaging 5.01 percent in this year’s spring negotiations—alongside a 21.4 percent jump in corporate tax, as financial institutions benefited from rising interest rates and technology-related demand lifted business results. Consumption-tax revenue rose 4 percent to a record ¥26 trillion. In Brazil, state-controlled giants such as Petrobras, Banco do Brasil and Caixa Econômica Federal amplified investments and distributed billions in dividends, which the government says made the companies net contributors to the public accounts. Officials in both capitals describe the figures as evidence of improved operational performance and governance.

The picture is markedly different in Berlin and Cairo. Germany’s finance ministry plans to increase new borrowing to €118.7 billion in 2027, nearly €8 billion more than projected in April, and will withdraw €6.8 billion from federal reserves, leaving only €3.9 billion. Annual interest payments on the federal debt are forecast to reach €66 billion by 2029, more than double the 2026 estimate. In Egypt, the 2026–2027 budget sets spending at E£5.2 trillion against revenues of E£4.1 trillion; debt-service costs alone absorb 46.7 percent of expenditure. To narrow the gap, the government is targeting a 27 percent rise in tax collections, including new levies on natural gas, gold manufacturing and the rental of administrative units, while continuing fuel and electricity price increases under its IMF-backed programme.

Japan’s administration, which advocates a “responsible and proactive” fiscal policy, must now fund a planned cut in the consumption tax on food from 8 percent to 1 percent from April 2027, alongside higher defence outlays and rising bond-interest payments. Officials acknowledge that non-tax revenue and unused funds—which helped contain borrowing this year—are not a stable resource base. Egypt is approaching a staff-level agreement with the IMF that would unlock about $1.6 billion upon completion of the seventh review of its extended fund facility. Germany’s cabinet has ordered all ministries to save 1 percent of their budgets, but opposition lawmakers describe the consolidation plan as lacking concrete cover. The next milestones are the compilation of Tokyo’s fiscal 2027 budget, the conclusion of Cairo’s IMF review, and the parliamentary stage of Berlin’s spending blueprint.