Published: 4 February 2009

GDP share of general government expenditure diminished in 2006 and 2007

In 2006 and 2007, gross domestic product (GDP) grew in nominal terms clearly faster than general government expenditure. In 2007, the GDP share of general government consolidated expenditure was 47.3 per cent while in 2005 it was 50.3 per cent. General government consolidated expenditure tolled EUR 85 billion in 2007. Over the 1990-2007 period general government expenditure grew in nominal terms by just short of four per cent per year.

In 2007, the biggest general government expenditure item was social protection with its GDP share of 19.9 per cent. The share of social protection expenditure was the highest in 1994 when the resources general government spent on it amounted to 28.3 per cent of GDP. Since the end of the economic recession of the early 1990s the share of expenditure on social protection has been diminishing steadily. General government spent 6.6 and 6.2 per cent of GDP, respectively, on health and general public services. Expenditure on education amounted to 5.8 per cent of GDP. Expenditure targeted at economic affairs totalled 4.4 per cent of GDP. The main division of economic affairs comprises expenditure on transport, subsidies to various activities, and expenditure on the promotion of applied research and development activity. The GDP shares of expenditure on defence , and public order and safety were 1.4 and 1.2 per cent, respectively. Since the late 1990s, variations in the GDP share of expenditure on defence have mainly been caused by the timing of purchases of defence equipment. Expenditure on recreation and culture totalled 1.1 per cent of GDP. The GDP shares of expenditure on environmental protection, and housing and community amenities were 0.4 and 0.3 per cent, respectively. The relatively small share of general government expenditure on these functions is partly caused by the fact that municipal sewage and other waste management departmental enterprises and corporations are in national accounts classified into the non-financial corporations sector, so expenditure on these services does not show as general government expenditure.

Statistics Finland now publishes for the first time data on general government expenditure by function by a more detailed breakdown than before. The new extended data content is explained in detail in the related pdf publication. More detailed data are published in database tables.

Consolidated Total Expenditures by Function, General Government 2006 - 2007

  Million euro Ratio to GDP, %
   
Function Year    
G0 All functions 2006 81 343 48.7
2007 84 979 47.3
G01 General public services 2006 10 894 6.5
2007 11 102 6.2
G02 Defence 2006 2 413 1.4
2007 2 507 1.4
G03 Public order and safety 2006 2 166 1.3
2007 2 243 1.2
G04 Economic affairs 2006 7 682 4.6
2007 7 899 4.4
G05 Environmental protection 2006 547 0.3
2007 602 0.3
G06 Housing and community amenities 2006 489 0.3
2007 629 0.4
G07 Health 2006 11 362 6.8
2007 11 904 6.6
G08 Recreation, culture and religion 2006 1 844 1.1
2007 1 985 1.1
G09 Education 2006 9 954 6.0
2007 10 350 5.8
G10 Social protection 2006 33 992 20.4
2007 35 758 19.9

Source: National Accounts, Statistics Finland

Inquiries: Asko Kauppinen (09) 1734 3216, rahoitus.tilinpito@stat.fi

Director in charge: Ari Tyrkkö

Publication in pdf-format (221.2 kB)

Tables

Tables in databases

Appendix tables


Updated 4.2.2009

Referencing instructions:

Official Statistics of Finland (OSF): General government expenditure by function [e-publication].
ISSN=1798-0828. 2007. Helsinki: Statistics Finland [referred: 6.12.2019].
Access method: http://www.stat.fi/til/jmete/2007/jmete_2007_2009-02-04_tie_001_en.html