Generational Accounting

Generational accounting is a method used to evaluate the long-term fiscal sustainability of a government's financial policies by estimating the economic burden on current and future generations. It looks at the government’s current and projected revenues, expenses, and liabilities, assessing how much each generation will need to contribute or receive over time. This approach helps policymakers understand whether today’s financial decisions will create an equitable economic future, ensuring that no generation is unfairly burdened with debt or unsupported by essential services compared to others.