Abstract.Day2.Gee

Use of National Transfer Accounts to Project the Implications of Rapid Population Ageing on Fiscal Sustainability in Singapore

Christopher Gee

Singapore is one of the most rapidly ageing countries in the world, by 2026 projected to become a super-aged society (>21% of the population aged 65 and over). Fiscal stewardship has reflected the motivations and behaviour proposed by Mason (2007) as rational societies anticipate a reversal of the first demographic dividend and accumulate public and private savings to support future consumption needs (the second demographic dividend). Projections of the fiscal support ratio indicate continued maintenance of balanced government budgets in the long-term will necessitate increases in effective tax rates from 2028. the paper will consider the implications of rapid population ageing on fiscal sustainability in the Singapore context and discuss relevant policy strategies. Reference: Mason, A. (2007a). Demographic Dividends: the Past, the Present and the Future. Contributions to Economic Analysis, 281, 75-98.