Open AccessDAMPAK TRANSISI DEMOGRAFI TERHADAP DEFISIT FISKAL DI INDONESIA
Author(s) -
Jaka Sriyana
Publication year - 2011
Publication title -
economic journal of emerging markets/economic journal of emerging markets
Language(s) - English
Resource type - Journals
eISSN - 2502-180X
pISSN - 2086-3128
DOI - 10.20885/ejem.v13i3.1995
Subject(s) - population ageing , economics , overlapping generations model , population , government (linguistics) , government budget , revenue , fiscal sustainability , tax revenue , sustainability , government revenue , deficit spending , process (computing) , ageing , public finance , fiscal policy , public economics , macroeconomics , debt , finance , demography , computer science , sociology , linguistics , philosophy , genetics , biology , ecology , operating system
This paper attempt to examines the effects of the Ageing Population (AP) process on the public finance in Indonesia. As we know, Indonesia is one of the developing countries that experience the ageing population. In this case, the overlapping generation (OLG) framework is used to estimate the demographic transition and to simulate the effect of it to deficit budget. The results show that the aging process starts to kick in 2012. The ageing process has a significant impact to declining tax revenue and increasing government spending. They also show that the aging process puts an upward pressure on budget deficit. As a result Indonesia potentially faces a long-term threat to fiscal sustainability. Keywords: ageing, population, overlapping, spending, budge