Ageing and the sustainability of Dutch public finances

Casper Ewijk, Nick Draper, Harry ter Rele and Ed Westerhout ()
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Ed Westerhout: CPB Netherlands Bureau for Economic Policy Analysis

No 61, CPB Special Publication from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: The ageing of the population jeopardises the sustainability of public finances in the Netherlands. The doubling of the ratio between the number of retirees and the number of workers destroys the balance between future public expenditure and tax revenues. Read also the accompanying press release.Indeed, the increase in expenditure on public pensions and health and long-term care will outweigh the increase in tax revenues. Budgetary reforms are therefore necessary in order to avoid that future generations will have to raise taxes or economize on public expenditure.Reforms in the field of social security of the last few years are a step in the right direction, but are insufficient. In particular, the decline of interest rates and the reduced wealth of pension funds have worsened the sustainability of public finances. The effects of reforms on the intergenerational balance are important for the question which further reforms are most attractive.

JEL-codes: H62 J11 (search for similar items in EconPapers)
Date: 2006-03
New Economics Papers: this item is included in nep-eec, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:cpb:spcial:61

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