Abstract:

The population aging, which is caused by the change in population age structure, has a significant impact on financial sustainability. As a result of the decrease in labour, the reduced tax base causes a decrease in public income, the increasing age-dependent population is in public spending (health, social security, retirement, medical care, etc.) Causes the increase. This study conducts a quantitative analysis of the impact of change in the population age structure on the public financial system. The analysis is based on the methodology of the change in the population age structure with the changes in cost and income observed in the public income and expenditure pen. In the study, the dynamic panel data analysis system-GMM approach has been adopted. According to the analysis, there is a positive relationship between the age-dependent rate and the budget gap at a level of 5%. On the other hand, it has been shown that age-related addiction rates have a positive impact on public spending and are in a meaningful relationship.