Vol. 539 No. 2
103 Mr. Durkan asked the Minister for Finance if he is satisfied that public expenditure here is in accord with best international practice, with particular reference to long-term economic development and expansion; and if he will make a statement on the matter. [19310/01]
To show comparable information across a number of countries I am providing data in the following table on general Government expenditure as a per cent of GDP in all EU countries. Information on trends in the United States and Japan is also included.
General Government expenditure is the internationally comparable measure used by EUROSTAT and includes all elements of Government spending, that is not just the annual expenditure that is voted by Dáil Éireann.
As can be seen from this information, general Government expenditure in Ireland is lower than in other EU member states but higher than in the US and Japan. The following points should be noted when comparing the data for the different countries. First, the expenditure ratios for Ireland would increase if they were based on GNP whereas the figures for nearly all of the other EU member states would be largely unaffected. Second, Ireland is at a different stage in its demographic cycle in comparison with the bulk of the other countries. Third, the decreasing trend in expenditure as a per cent of GDP reflects the very large increases in GDP over that period.
As regards long-term economic development and expansion, I draw the Deputy's attention to the level of and trend in capital spending. Since 1995 capital expenditure as a per cent of GDP in Ireland has increased from 3.9% to 6.2%. These figures are even more significant given the level of GDP growth over that period as they indicate substantially increased funding for capital projects.
I would also point out that the general Government expenditure figures do not include the 1% of GNP that is being provided for prefunding. The purpose of pre-funding is to use existing resources to build up assets which will part finance the future Exchequer cost of social welfare and public service pensions. From 2025 onwards the State's pensions Bill is expected to rise significantly due to the progressive ageing of the population. The application of resources now to part provide for this large future cost underpins the long-term stability and development of the Irish economy.
|
General Government Expenditure |
Country |
GG Expenditure |
as % of GDP |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
|
Belgium |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
53.450.72.7 |
53.651.02.6 |
52.249.13.1 |
51.348.42.9 |
51.048.03.0 |
50.047.03.0 |
||
|
Denmark |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
59.657.32.3 |
59.056.72.3 |
57.255.02.2 |
56.153.92.2 |
54.953.01.9 |
54.352.22.1 |
||
|
Germany |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
48.844.93.9 |
49.646.23.4 |
48.645.53.1 |
47.744.63.1 |
47.844.73.1 |
47.244.32.9 |
||
|
Greece |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
46.643.33.3 |
44.742.22.5 |
43.540.23.3 |
43.240.13.1 |
43.239.53.7 |
42.839.13.7 |
||
|
General Government Expenditure |
Country |
GG Expenditure |
as % of GDP |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
|
Spain |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
45.439.26.2 |
44.339.15.2 |
42.737.84.9 |
42.237.15.1 |
41.135.85.3 |
40.735.45.3 |
||
|
France |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
54.049.24.8 |
54.250.04.2 |
53.449.73.7 |
52.448.83.6 |
52.348.63.7 |
51.147.43.7 |
||
|
Ireland |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
41.237.33.9 |
39.535.93.6 |
37.634.03.6 |
35.531.83.7 |
36.430.16.3 |
35.429.26.2 |
||
|
Italy |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
53.148.54.6 |
52.949.13.8 |
50.947.33.6 |
49.445.63.8 |
48.844.93.9 |
47.843.93.9 |
||
|
Luxembourg |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
45.839.86.0 |
46.240.26.0 |
44.038.65.4 |
43.938.35.6 |
44.138.16.0 |
43.637.56.1 |
||
|
Netherlands |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
50.847.43.4 |
48.945.93.0 |
47.644.72.9 |
46.543.53.0 |
46.243.03.2 |
45.041.63.4 |
||
|
Austria |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
54.950.04.9 |
54.449.54.9 |
51.747.93.8 |
51.847.64.2 |
51.147.33.8 |
50.346.73.6 |
||
|
Portugal |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
45.440.15.3 |
45.839.95.9 |
44.838.76.1 |
45.139.35.8 |
47.840.87.0 |
48.341.37.0 |
||
|
Finland |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
57.153.73.4 |
56.953.03.9 |
54.150.73.4 |
51.147.93.2 |
49.846.83.0 |
47.744.82.9 |
||
|
Sweden |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
64.660.83.8 |
62.659.82.8 |
61.158.13.0 |
58.756.91.8 |
58.555.72.8 |
56.053.62.4 |
||
|
United Kingdom |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
45.041.53.5 |
43.840.83.0 |
41.539.22.3 |
40.238.31.9 |
39.337.22.1 |
39.137.02.1 |
||
|
EU 15 |
Total ExpenditureCurrent ExpenditureCapital Expenditure |
50.646.44.2 |
50.446.83.6 |
48.745.43.3 |
47.644.43.2 |
47.243.83.4 |
46.343.03.3 |
||
|
Japan* |
Total Expenditure |
35.0 |
35.3 |
34.5 |
35.5 |
31.3 |
33.0 |
||
|
United States* |
Total Expenditure |
35.0 |
34.6 |
33.6 |
32.7 |
32.2 |
31.7 |
