Research On The Impact Of Population Aging On Local Fiscal Pressure

With the rapid development of Chinese economy and the continuous adjustment of the fertility policy,the birth rate has gradually declined.The life expectancy of the population has gradually increased.The problem of population aging has continued to increase.The aging of the population will firstly lead to a gradual decrease in the proportion of the labor force,which is not conducive to national and regional economic development.Secondly,it will lead to an increase in the old-age dependency ratio,increasing the pressure on the working generation to support them.And finally,higher requirements for national and local fiscal expenditures.It is not conducive to the sustainable state and local finance.By reading numerous of related literatures,this paper analyzes the mechanism of the effect of population aging on local financial pressure.First of all,this paper discusses the relationship between aging and financial pressure in theory,and puts forward the theoretical basis and research hypothesis of this paper.Secondly,it summarizes the current situation and characteristics of Chinese population aging and financial pressure.Finally,the panel data of 30 Chinese provinces from 2007 to 2020 is used to empirically analyze the research hypothesis in this paper.The empirical results show that the increase of population aging will increase the local fiscal pressure,and the different regions will show heterogeneity.Population size,degree of opening to the outside world and manufacturing agglomeration have played a significant role in regulating it.Population ageing has implications for fiscal pressures through fiscal health spending.On the basis of summarizing the research conclusions,this paper believes that China should firstly optimize the structure of fiscal expenditures and improve the efficiency of the use of fiscal funds.Secondly,China should gradually advocate postponing retirement to improve the social structure.Then China should increase medical and health expenditures to improve medical conditions.Finally,China should improve the transfer payment system to adjust regional differences.