Public Spending Rises Largely Due to Increased Services Now

Government expenditures have increased by 3% per year since 1998. This sector includes all governmental and semi-governmental organizations. This growth is mainly due to the increase in services in the areas of education and health, for example.

Market or commercial expenditures increased by 1.3% on an annual basis, while services increased by the same amount

The Office of Social and Cultural Planning reports this in the report Expected audience, which contains an overview. the evolution of the expenditure of 27 public services between 1998 and 2015.

In 1998, public spending on public services amounted to 74 billion euros. In 2015, this amount had reached 123 billion. The SCP emphasizes that this does not concern the amounts paid, for example, to social security.

Expenditure on curative and long-term care rose the most

The differences between the public sector sectors are significant. In curative (cure and treatment) care, spending rose 32%, compared with 27% in long-term care. This is partly due to the aging of the population. Security and justice (9%), social security (2%) and other sectors (7%) account for a much smaller share of spending.

In 2015, 60% of the total public service expenditure financed by the government. Citizens have contributed 7% of their own payments and the remaining 33% is largely a result of collective schemes such as the Healthcare Insurance Act.

According to the SCP, rising staff costs are a major cause of growth in public spending. They absorb about two-thirds of total expenses.

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