The National Assembly Budget Office produced a long-term fiscal projections to pre-emptively prepare for the fiscal risks expected for the country in the mid-to long-term perspective. The results of the long-term fiscal projection have been significant in providing preliminary data in the National Assembly discussions on securing the fiscal sustainability of the country.
The long-term fiscal outlook is based on the assumption that the current fiscal policy is maintained and can vary depending on the degree of the government's efforts in fiscal management during the projection period.
The results show that the government's efforts to reduce discretionary expenditures have a significant effect on securing fiscal sustainabiliy. It is, however, necessary to restructure not only discretionary expenditures, but mandatory expenditures, as well, in order to keep the government debt ratio within 100% in the long term. In addition, pre-emptive fiscal stabilization efforts are required for social insurances, where fiscal deficits continue to accumulate, to ensure system sustainability.