The Office for Budget Responsibility on Thursday said the U.K. fiscal position is unsustainable if the government absorbs national income simply to pay the interest on its debt.
Ageing population is adding upward pressure on public spending, it said. According to OBR calculation, expenditure will rise to 40.8 percent of GDP by 2061-62, an increase of 5.2 percent of GDP in today's term.
Health spending will increase to 9.1 percent of GDP, and state pension costs will climb to 8.3 percent in 2061-62, it said.
At the same time, non-interest revenues are projected to rise to 38.2 percent of GDP in 2061-62, marking an increase of 0.9 percent of GDP or GBP 14 billion in today's terms.
The long-term outlook for public spending and revenues is subject to huge uncertainties.
by RTT Staff Writer
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