Public spending has increased 3 percent every year since 1998. The sector includes all government and semi-government organizations. This growth is mainly due to improved services in, for example, education and health care.
Expenditures in the market or commercial sector grew less rapidly by 1.3 percent each year, while services grew by the same amount.
This is what was reported by the Office of Social and Cultural Planning in the Public report, which contains an overview of the development of spending 27 public services between 1998 and 2015.
In 1998, public spending on public services totaled 74 billion euros. In 2015, that number increased to 123 billion. SCP emphasizes that this does not involve the amount paid, for example, social security.
Expenditures for curative and long-term care are highest
Differences between parts of the public sector are large. In so-called curative care (intended for healing and treatment), expenditure increased 32 percent, in long-term care the growth was 27 percent. This is partly because of an aging population. Security and justice (9 percent), social security (2 percent) and other sectors (7 percent) constitute a much smaller share of expenditure.
In 2015, 60 percent of total expenditure on public facilities was funded by the government. Residents provide 7 percent of their own payments and the remaining 33 percent mostly fall under collective schemes such as the Health Insurance Act.
According to SCP, rising personnel costs are a major cause of growth in public expenditure. They take around two thirds of total expenditure.
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