Fiscal Sustainability – A Review on Pension System

Abstract

Fiscal sustainability represents one of the primary objectives for policymakers worldwide. Debates on how to achieve and maintain fiscal sustainability are always present in the governments’ agendas and are also a crucial topic in the academic world, especially in the Public Finance field. This study has focused on the fiscal sustainability and its linkage with the pension’s programs. It presents the pension challenges from the perspective of the WB6 countries and it compares with the most developed economies. A broader focus was given to Kosovo, a state in WB6, which represents a unique case in WB6 due to the demography structure and challenges regarding the pensions. In Kosovo the pension system of elderly people is characterized as discriminatory and concrete steps need to be taken in order to be reformed. Furthermore, Kosovo needs to take advantage of the youth and create strategies to offer better opportunities to keep them in the country.

Keywords

• transfers and subventions
• aging problem
• youth
• fiscal policy
• fiscal consolidation