English summary: Fiscal sustainability in the Faroe Islands
1. februar 2024
Annað
The current Faroese fiscal policy is unsustainable. Given the growing elderly population, it will not be possible to maintain the current welfare service level in the future without reforms. A balance must be struck where rising life expectancy is not merely synonymous with more years as a pensioner, but also more active years on the labour market.
1. februar 2024
Annað
Fiscal policy sustainability, or lack thereof, is illustrated with a figure termed the fiscal policy sustainability indicator (the indicator from hereon). A negative indicator means that public expenditure exceeds future public revenues. The indicator illustrates the percentage of annual GDP shortfall if current welfare levels are to be maintained.