A Study of the Impact of Population Aging on Fiscal Sustainability in China

China has entered a deeply aging society, and the population poses significant public risk to fiscal sustainability. In this regard, researchers have conducted large number of studies, but sustainability indicators used in existing literature are not scientific enough, sample data too macro, heterogeneity analysis is comprehensive enough. This paper innovatively constructs based on from 4 municipalities directly under central government, 8 provincial capitals, 88 prefecture-level cities 2010–2019, analyzes impact eastern, central, western, multi-level China, using methods such as two-way fixed-effects models. The study finds that (1) significantly hampered by aging; is, more there less is. (2) inhibitory effect greater developed regions compared backward regions. Compared cities, (including capitals) much negatively impacted (3) paths through which inhibits healthcare expenditures social security employment expenditures. policy recommendations put forward raise fertility rate, protect capitals deal with aging, increase effectiveness use funds for medical health conclusions drawn positive China’s response problems caused an population.