The Survey recommends taking concrete steps to improve public spending efficiency and find new sources of revenue. It is also vital to maintain
Health spending per person is already high in
New revenue sources could focus on property and consumption taxes, which are less distortive for economic activity than income tax. Property values should be regularly reassessed for calculating local property taxes - today's are based on 2013 values - and VAT should be streamlined from five rates to three. Low-income households should be cushioned from any adverse impacts. Separately, efforts to increase housing supply should continue as a way to curb soaring property prices.
Such risks make it even more important that