Assessment of public finances 2019
Kokkinen, Arto (17.01.2020)
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-202001201020
Sound fiscal policy should be conducted keeping in mind the economy’s long-term challenges. Finland's population structure is becoming increasingly unfavourable on account of its declining working-age population and growing share of the elderly. This imbalance, together with rising age-related expenditure, will create a situation for the public finances where long-term general government expenditure is expected to exceed its revenue. In addition to the aforementioned sustainability gap, sound fiscal policy will prepare for future recessions and negative surprises.