What are the primary factors contributing to the rising debt-to-GDP ratio, according to sustainability implications?

The rising debt-to-GDP ratio is significantly influenced by healthcare costs and an aging population. As populations age, there tends to be an increase in healthcare requirements, which places a substantial fiscal burden on governmental budgets. This demographic shift leads governments to allocate more resources to healthcare services, pensions, and social security, all of which contribute to higher deficits if revenue does not keep pace with these increases in spending.

In addition, as people age, the ratio of dependents to working-age individuals increases, resulting in more expenditures on health-related programs and potentially reducing economic productivity. This creates a challenging dynamic where the demand for government services escalates while the tax base may diminish in proportion to the overall population. Consequently, these factors collectively strain public finances and elevate the debt-to-GDP ratio, raising concerns about sustainability and fiscal stability for future generations.