Finland Times

Monday, 24 June, 2024
Home BUSINESSSocial protection expenditure grows 3.7%
Sat, 30 Jan, 2016 02:10:18 AM
FTimes Report, Jan 30

Expenditure directed to social protection grew most, by 3.7 per cent and amounted to EUR 52.2 billion in 2014, according to Statistics Finland’s data.

A major part of general government expenditure was directed to social protection. Social protection expenditure also grew most from 2013.

The growth in social protection expenditure was particularly due to expenditure connected to old age and unemployment.

However, the growth in total general government expenditure slowed down compared with previous years and stood at 2.0 per cent as per the data.

Most of the increase in social protection expenditure is explained by the growing expenditure on old age and unemployment.

The increase in expenditure related to old age was caused by growing employment pensions paid, for example.

The share of social protection in total expenditure went up to 43.8 per cent from 43.0 per cent in the previous year. The share of other function categories in total expenditure remained unchanged or contracted slightly.

General government is comprised of central government, local government and social security funds.

Central government's total expenditure grew by exactly one per cent and local government's total expenditure by 1.2 per cent.

The expenditure of social security funds grew again fastest among sub-sectors, by 4.7 per cent from the year before.

Among consolidated total general government expenditure, central government accounted for 27 per cent of expenditure, local government for 40 per cent, and social security funds for 33 per cent.

The expenditure item that grew most was paid social benefits. They grew in total by EUR 1.8 billion.

EUR 0.9 billion of the growth in social benefits was accountable to the increase in old-age pensions and EUR 0.6 billion in employment allowances.

Purchases of goods and services, or intermediate consumption, grew. Wages and salaries paid contracted slightly, for the first time since 1994. In addition, property expenditure contracted.

In 2014, general government's total expenditure amounted to EUR 119 billion, or 58.1 per cent relative to GDP, the statistics show.

Net expenditure was EUR 104 billion and the ratio to GDP was 50.6 per cent. Consumption expenditure grew by 0.9 per cent and amounted to EUR 51 billion, or 24.7 per cent relative to GDP.

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