Looming Financial Pressures Threaten Social Safety Nets with Tax Hikes and Benefit Cuts
The sustainability of social safety nets is facing significant challenges, according to recent reports. Mounting financial pressures are forcing governments to consider difficult choices, including potential tax increases and reductions in the scope of social welfare programs. These pressures underscore the urgent need for innovative solutions to ensure the long-term viability of these crucial programs.
One of the primary drivers of this financial strain is the increasing demand for social services. Factors like aging populations, rising healthcare costs, and economic downturns place a growing burden on public resources. For example, the global population aged 65 and over is projected to more than double by 2050, reaching 1.6 billion. This demographic shift will inevitably lead to increased demand for healthcare, pensions, and
