Making the Fiscal System Sustainable and More Efficient

Over the past two decades public debt as a percentage of GDP has risen almost without pause, and the shares of public expenditure and revenues in GDP remain among the highest in OECD countries. Control of expenditure has been particularly difficult in the social and health insurance sector. The tax and social security contribution systems are rather complex creating high administrative costs and a number of distortions to incentives. This chapter recommends: i) continuing efforts to control health and other expenditures, and reviewing the way in which some expenditure responsibilities and associated financial...