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Published: 31 January 2013

Share of public expenditure of gross domestic product decreased in 2011 (the review was added on 20 March 2013)

The share of total general government expenditure of gross domestic product (GDP) was 55.0 per cent in 2011. The share of GDP diminished from 2010, when it was 55.8 per cent. Total general government expenditure grew by 4.6 per cent, or EUR 4.6 billion in 2011. The share of total expenditure of GDP fell, because GDP grew in nominal terms faster than public expenditure. In 2010, total expenditure increased by 3.1 per cent.

Consolidated Total Expenditures by Function, General Government 2010–2011

Function	Year	Million euro	Ratio to GDP, %
G0 All functions	2010	99 707	55,8
	2011	104 259	55,0
G01 General public services	2010	13 018	7,3
	2011	13 889	7,3
G02 Defence	2010	2 789	1,6
	2011	2 753	1,5
G03 Public order and safety	2010	2 766	1,5
	2011	2 825	1,5
G04 Economic affairs	2010	8 730	4,9
	2011	9 120	4,8
G05 Environmental protection	2010	506	0,3
	2011	471	0,2
G06 Housing and community amenities	2010	914	0,5
	2011	1 047	0,6
G07 Health	2010	14 130	7,9
	2011	14 829	7,8
G08 Recreation, culture and religion	2010	2 204	1,2
	2011	2 300	1,2
G09 Education	2010	11 735	6,6
	2011	12 091	6,4
G10 Social protection	2010	42 915	24,0
	2011	44 934	23,7

The biggest general government expenditure item was again social protection on which expenditure amounted to some EUR 44.9 billion, or 23.7 per cent of GDP. EUR 33.1 billion of the social protection expenditure was social benefits in cash, i.e. pensions and allowances paid to households. After social protection, the second largest share of expenditure, or EUR 14.8 billion and 7.8 per cent of GDP, was spent on health. The third biggest function was general public services.

Around 40 per cent of consolidated general government expenditure was spent in the local government sector and 32 per cent in the sector of social security funds in 2011. The remaining 28 per cent represented central government expenditure.

General government consumption expenditure went up by 4.4 per cent in 2011, which is at the same rate as total expenditure. The share of consumption expenditure of GDP was 24.4 per cent. The biggest function group of consumption expenditure was health. Consumption expenditure depicts current expenses incurred by general government from the production of services.

General government total expenditure here refers to consolidated general government expenditure. Consolidated expenditure excludes property expenditure, capital transfers and income transfers between general government sub-sectors, e.g. income transfers from central government to local government. Since total expenditure is by nature gross expenditure, in the case of the local government sector it includes, for instance, acquisitions made by municipalities from their own municipal enterprises. These acquisitions are correspondingly included in the sector's total revenue. General government comprises central government, local government, employment pension schemes and other social security funds.

Source: National Accounts, Statistics Finland

Inquiries: Jukka Hytönen 09 1734 3484, skt.95@stat.fi

Director in charge: Leena Storgårds

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Reviews

• 1. Review of general government expenditure by function (translation added 18.3.2013) (31.1.2013)

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Appendix tables

• Appendix table 1. Consolidated Total Expenditures by Function, General Government 2011 (31.1.2013)

Figures

• Appendix figure 1. General government consolidated total expenditure by function 1991 - 2011, Ratio to GDP (31.1.2013)

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Updated 31.1.2013