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No end in sight for record-high public debt fueled by COVID-19

Investment for economic growth more important than tax increases or austerity

Countries are searching for smarter taxation and spending programs to spark economic growth.

TOKYO -- Countries around the world have expanded fiscal expenditure due to the coronavirus pandemic, causing public debt to balloon to unprecedented levels. The debt-to-gross domestic product ratio of advanced economies in 2021 will reach a record high of 125%.

To rebalance budgets, investment to accelerate economic growth will be more important than raising taxes or imposing austerity measures. This is because, in the long term, GDP growth influences tax income.

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