Australia, February 1: Australia will look for inviting overseas citizens in the wake of increasing aged population of Australia by 2050.
This will be done to eliminate the increasing health costs that might send the country into high debt by the year 2050, revealed figures by the 2010 Intergenerational Report. The report has been launched by Treasurer Wayne Swan here today.
In this report, Swan stresses the need to mobilize ageing workforce of Australia over the period of next 4 centuries since health care costs for high rates of aged baby boomers will skyrocket in the country.
Hence, there is a compelling need to boost immigration to Australia to enable the payment of such costs. And, if anything is not done by the year 2050 when the country’s population will hit the 35 million mark, then this will result in a drop of 8 percent in Australia’ GDP.
In the next 40 years, the number of Australian citizens between 65 years and 84 years will nearly double as compared to the present times making the government spend much more on the heath care of such baby boomer population.
The government spending on increased health care and aged care will result in decline in the GDP by 2.75 percent. Moreover, the net debt of the nation will move to 20 percent of the GDP and the country will have a budget deficit of 3.75 percent as the economy progresses towards the year 2050.
Swan made it quite clear that an earlier action will help in easing adjustments in the future.
The report by Swan will help the Australian government in introducing several measures to increase the productivity of the economy, cut increasing costs and put a curb on the carbon emissions in the country.
The three options—
Three options suggested by Mr. Swan for the government of Australia to move out of such eminent crisis are as follows—
• Increase taxes or cut government services; or
• Allow Budget pressures to pile up and leaving the coming generations to face the situation; or
• Take the required steps now and stabilize the economy of Australia.