Age Characteristics of population and Government social expenditures

Population characteristics in general and specially age structure of the population, have a very important effect on the levels of government spending and thus on potential financial strain. The young and old age population are two groups that impose various costs on the government from different aspects. In particular, the young population is merely a consumer through the need for education and other services and, given the high share of the population under the age of 15, has a significant impact on the formation of government spending. Based on the estimation of regression models, the relationship between the age structure of the population and the social expenditures of the state during the period (1971-2016) is explained by using available information and statistics. Excel and Eviews have been used in calculations. The age structure of the population has a financial strain, whereby the relative increase of the elderly and younger populations increases with the share of social services substantinely. The results show that due to population pressure and increasing needs, the ratio of educational expenditures to gross domestic product is significantly affected by the proportion of young population. On the other hand, the share of health and welfare expenditures with the elderly population is positive and meaningful.