Ageing and the Sustainability of Dutch Public Finances

C. van Ewijk, N. Draper, E.W.M.T. Westerhout, H. ter Rele

Research output: Book/ReportReport

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. 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.
Original languageEnglish
Place of PublicationThe Hague
PublisherCPB
Number of pages133
ISBN (Print)9058332691, 9789058332691
Publication statusPublished - Mar 2006
Externally publishedYes

Publication series

NameCPB Special Publications

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