Long-Term Trends in Public Finances in the G-7 Economies

September 1, 2010

Preview Citation

Format: Chicago

Andrea Schaechter, and Carlo Cottarelli. Long-Term Trends in Public Finances in the G-7 Economies, (USA: International Monetary Fund, 2010) accessed November 21, 2024

Summary

Today’s record public debt levels in most advanced economies are not only a direct fall-out from the global crisis. Public debt had ratcheted up over many decades before, when it had been used, in most of the G-7 countries, as the ultimate shock absorber—rising in bad times but not declining much in good times. Alongside, primary spending increased, particularly during 1965–85, reflecting predominantly a surge in health care and pension spending. Looking ahead, advanced economies will face the formidable challenge of reducing debt ratios at a time when ageing-related spending, in particular often underestimated pressures from health care systems, will put additional pressure on public finances. Addressing these fiscal challenges will require growth-friendly structural reforms, a fiscal strategy involving gradual but steady fiscal adjustment, stronger fiscal institutions, expenditure and revenue reforms, and an appropriate degree of burden sharing across all stakeholders.

Subject: Corporate income tax, Expenditure, Health care spending, Public debt, Social security contributions, Taxes

Keywords: Baseline debt projection, Corporate income tax, Country, Country difference, Debt, Debt ratio, Europe, G-7, GDP, Global, Government debt ratios, Government expenditure, Health care spending, IMF staff estimate, Interest rate, Public debt debt ratio, Social security contributions, SPN

Publication Details

Pages:

24
Volume:

---
DOI:

---
Issue:

---
Series:

Staff Position Note No. 2010/013
Stock No:

SPNEA2010013
ISBN:

9781455263325
ISSN:

2617-6742

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Staff Position Notes