Social protection accounted for 33% of total government expenditure in 2013

Total general government expenditure for 2013 was €3,196.3 million with an increase of €133.8 million compared with the previous year. There were increases in social protection with €49.4 million, primarily observed on pensions, and in health with €38.4 million, mainly on hospital services.

Economic Affairs went up by €28.2 million as a result of a higher equity injection to the national air carrier. Education increased by €23.5 million, mainly in tertiary and secondary education. Partly offsetting these were falls in general public services with €10.5 million and housing and community amenities with €6.1 million.

With regard to expenditure by function as a percentage of total general government expenditure, the highest proportion in 2013 was on social protection (33%), followed by general public services (16.4 %), education (13.8%) and health (13.5%). In contrast, expenditure on housing and community amenities had the lowest contribution to total expenditure followed by defence, representing 0.8% and 1.6% respectively.

In total, general government expenditure declined marginally to 42.4% of GDP in 2013 from 42.5% in 2012.

A more detailed breakdown of General Government expenditure showed that for 2013, the largest expenditure was on old age pensions (€625.5 million), which represented 59.3% of total expenditure on social protection, and on hospital services (€280.3 million), making up 64.8% of total expenditure on health. Moreover, considerable outlay was registered on public debt transactions (€223.3 million) and executive and legislative organs, financial, fiscal and external affairs (€196.6 million).

"Latest official figures dismiss the Opposition’s claims on uncontrolled government expenditure,"

The Ministry of Finance said that figures published by the National Statistics Office (NSO) on general government expenditure confirmed that the government was successfully containing public expenditure, while at the same time sustaining crucial education, health, and social protection programmes.

According to the government, the figures published on Wednesday 28th January 2015 showed that the general government expenditure in 2013 increased by €133.8 million over the previous year, fully €100 million less than in 2012, when it increased by €242.3 million.

“Of the €133.8 million increase in 2013, over €111 million were invested in social protection, health, and education. This represents 83% of the total increase in expenditure, which was allocated to essential state services,” the government said.

“The ratio of public expenditure as a percentage of the Gross Domestic Product (GDP) fell marginally from 42.5% in 2012, to 42.4% in 2013. It is expected to remain stable in 2014. In addition, a further €28.2 million of the increase was due to the equity injection in Air Malta, as part of its financing package.”

The government insisted that the latest official figures dismiss the Opposition’s claims on allegedly uncontrolled government expenditure due to higher outlay on recruitment in the public sector in its first year of government.

“On the contrary, the general government expenditure ratio has decreased, with expenditure being largely driven by increased commitments and resources in priority sectors and essential services.”

“This is proof of the Government’s commitment to further strengthen these social sectors, and ensure their services remain free and of the highest quality, this for the benefit of the present generation, as well as of future ones,” said the ministry.