Government Expenditure by Function, 2021

Government expenditure highest for social protection: 17.9% of GDP

Compared to the year before, expenditure went up by 6.5% in nominal terms, to EUR 9,335 million. As in 2020, in the second year of the COVID-19 epidemic the main reason for the increase was social benefits paid due to the epidemic.
Of total government expenditure for social protection, over a half was spent for old age (which relates mainly to old age pensions); this expenditure increased by 4.8%, to EUR 5,424 million. Expenditure for sickness and disability increased by 18.1%, to EUR 1,360 million, while expenditure for family and children went up by 13.6%, to EUR 1,059 million. Due to lower unemployment, the expenditure for unemployment decreased by 18.8 % to EUR 234 million.

8.1% of GDP spent for health

For health, EUR 4,250 million was spent. Compared to 2020, expenditure increased in nominal terms by 13.5% or EUR 505 million. The main reason for the increase was hospital services; expenditure for these went up the most, by EUR 150 million.

Expenditure on economic affairs down from 8.1% to 6.8% of GDP

Expenditure decreased by EUR 221 million from 2020 to 2021. The expenditure level was still affected by the measures undertaken in response to the epidemic: the expenditure measures shown in this function were subsidies paid for general economic affairs and to support the labour market; these were halved compared to the year before (from EUR 1,438 million to EUR 735 million), while tourist voucher payments increased (from EUR 128 million to 227 million).

16.4% of GDP spent for other functions

For education, 5.7% of GDP was spent. Expenditure went up nominally by 10.6%, to EUR 2,960 million. 
5.2% of GDP was spent for general public services. The main category of general public services refers to public debt transaction (interest payment); compared to 2020, expenditure decreased by 14.0%, to EUR 674 million.
For public order and safety, 1.8% of GDP was spent, for recreation, culture and religion 1.4% of GDP and for defence 1.2% of GDP. In addition, 0.7% of GDP was spent for environmental protection, and 0.5% of GDP for housing and communities amenities.

Tables with the latest data are available in the SiStat Database.