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General government outlays by functions 1998-2008

Statistics Iceland releases now a new issue of Statistical Series. This issue presents the General government outlays by functions for the years 1998-2008, and its main focus is on the expenditure levels and development in amounts, percentage and real values. It also looks at particular expenditure projects during this period and gives a short overview of the general government outlays and its subsectors back to 1980.

General government outlays have increased by nearly 11 percent of GDP from the beginning of the eighties, or from 34.1% of GDP in 1980 to 44.8% of GDP in 2008 (Central government debt assumption of 192 billion ISK in 2008 is excluded). Central government’s (CG) outlays have increased from 27.5% to 32.2% of GDP and local governments’ outlays from 7.1% to 14.0% of GDP in 2008. During this period, some projects have been moved from the central government to the local governments, like primary and lower-secondary school levels. The local governments’ service has as well increased continuously over time. Outlays by social security funds have increased at a lower rate, measured in this way, or from 6.8% of GDP in 1980 to 7.4% of GDP in 2008.

General government total expenditure at constant prices (deflated by government final consumption price index) has increased from 1,087 thousand ISK per capita in 1980 to 2,071 thousand ISK per capita in 2008 (excluding CG’s debt assumption), having nearly doubled per capita during this period in real terms. At the same time, the CG’s expenditure has increased from 875 thousand ISK to 1,492 thousand ISK per capita or by 70% in real terms. The increase in expenditure by local governments during the period measured in this way has nearly tripled (185%), or increased from 226 thousand ISK per capita in 1980 to 646 thousand ISK per capita in 2008. Finally, expenditure by social security funds has increased by 57% in real terms or from 217 thousand ISK per capita in 1980 to 341 thousand ISK per capita in 2008.

Social protection outlays have been the largest expenditure function of the general government over time. In 2008, 132 billion ISK were spent on that purpose, comprising 8.9% of GDP, which corresponded to 307 thousand ISK per capita. In comparison, outlays on social protection amounted to 7.7% of GDP, or 238.5 thousand ISK per capita, in 1998. Public expenditure on education amounted to 124 billion ISK, or 8.4% of GDP, in 2008 and has increased by 1 percent of GDP during the last ten years. Public expenditure on health was 117 billion ISK, or 8% of GDP, in 2008, which is 0.4% of GDP higher than in 1998. These three functions comprise the largest part of the general government expenditure amounting to 25% of GDP in 2008.

General government outlays by functions 1998-2008 - Statistical Series