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Fiscal sustainability in japan what to tackle

Fiscal sustainability in Japan: What things to tackle

Japan leads the advanced economies in the speed and magnitude of demographic ageing and gets the highest debt-to-output ratio. Rising social insurance expenditures are projected to far outpace revenues also to create a fiscal burden. This column presents sobering projections for Japanese government debt in the lack of reform, but argues a mix of policies, including policies to encourage greater labour participation by women also to enhance productivity, could achieve sustainability.