The Ministry of Strategy and Finance has announced South Korea's long-term fiscal prospects in 45 years based on population and growth rate.
 
The ministry forecast Friday that government debt, which currently accounts for about 40 percent of gross domestic product (GDP), could increase to 62-point-four percent of GDP in 2060 if government expenditure increases along with the size of the nation's economy.
 
This is because even though the nation's growth rate is gradually declining, welfare expenses are increasing due to low birth and aging.
 
However, if the government continues to lower its expenditure by 10 percent annually, the finance ministry said government debt will account for 38 percent of GDP in 2060.
 
The ministry added that the national health insurance will be depleted in 2025 if no changes are made to its low-pay and high-income structure. It also warned that without changes, the long-term care insurance for seniors will be depleted in 2028, the teachers' pension in 2042 and the national pension in 2060.
 
The government established a council composed of 27 members from the private sector and the government to analyze its long-term fiscal prospects. The council has been assessing the prospects for the past year.
 
The ministry said government debt between 38 percent and 62 percent of GDP is lower than next year's predicted average of 115-point-four percent for members of the Organization for Economic Cooperation and Development.