Mechanism Analysis Of The Influence Of Aging Population On Local Government Debt Sustainability

As China’s economy grows long and sustainable,local government debt at every level also continues to rise.During this period,due to the great improvement of the medical and health service level,the revision of the family planning policy and the transformation of the national birth ideology,our country officially entered the aging population society in 21 th.In past few day,China’s population aging is fast and coming fast.This is because the central government has put forward higher requirements on local governments and their financial resources to deedy deal with the aging of the population.By increasing the debt burden of local governments,they can obtain adequate and long-term stable financial support.At the same time,the impact of older persons on financial incomes and expenditures,such as these,will also be reflected in the debt of local governments.Thus,the impact of ageing on the long-term debt of local governments has become a pressing issue.In this context,newspapers also discuss the impact of ageing on local government debt.In this paper,research documents and related theories in this paper is cumulative,and the impact of local government budgets on elderly populations is deep analysis.First,the analysis of the paper comes from the standpoint of local governments,which growth in the population could directly affect the poverty experienced by local government debt through the fiscal revenue effect and fiscal expenditure effect.At the same time,this paper explains the development position of aging population and local government debt.In addition,based on the background of different acceleration periods of population aging,the co-integration test is conducted on the sustainability of local government debt.According to the results,the worsening of population aging leads to the reduction of the sustainability level of local government debt.Finally,the provincial panel data is used to carry out an empirical analysis of the effect of population aging on the sustainability of local government debt.According to the results,It seems that the aging population will have a negative impact on the sustainable debt of local governments.However,the fiscal revenue effect will slow down the negative impact,while the fiscal expenditure effect will aggravate the negative impact.According to the above-mentioned study,the document contains specific recommendations to mitigate the negative impact of population ageing on the sustainability of public debt through various pensions,pensions,incomes and expenditures.