Fiscal sustainability indicators: New evidence from developing and developed countries.

The study attempts to assess fiscal sustainability indicators for 142 of developing and developed countries during 1985-2018. In the literature, there are two indicators widely employed both in developing and developed countries cover primary gap and recursive algorithm. Theoretically, the indicators can be expressed by the concept of the intertemporal budget constraint. Moreover, the study proposes new fiscal sustainability indicator with dimension of financial technology. The new indicator presents a significant contribution on literature of fiscal sustainability. The principal component analysis (PCA) will be employed. The findings exhibit that some countries can maintain fiscally sustainable in a certain period, while most countries face fiscally unsustainable. The level of fiscal sustainability is determined by some key factors such as the level of public debt to GDP ratio and the level of financial technology. The results suggest on government public policies such as maintaining the level of public debt to GDP ratio at a certain level and increasing the level of financial technology. [ABSTRACT FROM AUTHOR]