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How do the options compare?

Overall, improved effectiveness of social spending has potential to be substantial enough to support sustainable long-term public finances. By 2060, the reductions in primary expenses (and the primary deficit from Figure 6.2) are broadly similar to some of the options considered in the 2013 Statement and updated in Figure 6.4 above.

As the previous sections of this Statement have indicated, governments have many options at their disposal to address long-term fiscal challenges. Economic growth provides revenue (e.g. through taxation) and, in turn, provides governments with choices on how to address expense pressures. Opportunities to lift economic growth by improving productivity, skills, and social outcomes further enhance these choices and can reduce some of the expense pressures (e.g. from welfare and justice expenses). These opportunities could assist governments in achieving their medium-term fiscal strategy, and sit alongside broader changes to taxation and major spending areas.

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