Demographic Issue: Dependency Ratio

Debt Burden Dept: Governments have focused on the short term during three years of turmoil in the global economy, which triggered stimulus spending and increased government debt. But Mr. Page said government leaders must also focus on the long-term cost of this higher debt burden, according to Globe and Mail. The dependency ratio a measure of the number of Canadians 65 years of age or higher in contrast to the population who are 15 to 64 is projected to rise as much this decade as it did over the past 40 years. Mr. Page said demographics and the cost of health care clearly should be a big part of negotiations to renew transfer deals with the provinces that expire in 2014. The fiscal structure at the federal and provincial-territorial level is not sustainable over the long term, the report states. Population aging will put downward pressure on revenues, as growth in economic activity, and therefore the tax base, slows. At the same time, aging will put upward pressure on programs whose benefits are mostly realized by Canadians in older age groups. Policy makers will need to address the aging demographic issue. We feel it should be part of the discussion leading up to the 2012 budget, Mr. Page said in an email to the Globe prior to the report s release. (www.immigrantscanada.com). As reported in the news.