In COFOG division 01. General public services expenditure of general government decreased by €68 m in 2019. This development was mainly due to the decrease of expenditure for the own resources to the EU-budget in COFOG group 01.1 Executive and legislative organs, financial and fiscal affairs, external affairs. Furthermore, a decrease in interest payable (COFOG group 01.7 Public debt transactions) can be noticed in 2019. On the other hand, an increase in expenditure by €485 m in 2019 can be noticed in COFOG group 01.3 General services. This is partly due to increasing gross capital formation of the “Bundesimmobiliengesellschaft”. Generally, it is important to note that COFOG group 01.8 Transfers of a general character between different levels of government is influenced by the so-called “consolidation adjustment” (see Explanations below) which sometimes fluctuates heavily. To prevent distortions in the various other COFOG groups, these effects were allocated to COFOG group 01.8. Without expenditure of COFOG group 01.7 and 01.8 an increase in expenditure by €507 m can be found under General public services.
An increase in expenditure by 6.8% can be noticed in COFOG group 02.1 Military defence in 2019. This was caused by increasing gross capital formation. An increase in expenditure by €119 m in this COFOG group and a decrease by €50 m in COFOG group 02.5 Defence n.e.c can be seen in 2017. Both is partly due to a reorganisation within the respective detail budgets in the closed accounts of federal government in 2017.
In COFOG division 04. Economic affairs expenditure of general government increased by €365 m in 2019. An increase in expenditure by €96 m in 2019 can be noticed in COFOG group 04.1 General economic, commercial and labour affairs. A rise of €626 m can be noticed in 2017 in this Cofog-group, which is partly due to higher expenditure for partial retirement and to the employment bonus. Furthermore also a capital transfer is included in this COFOG group in 2017. This capital transfer is due to the write-off of claims from the “Phönix-Bürgschaft” which is based on a settlement agreement of March 2017 between Bund and HETA Asset Resolution AG. In COFOG group 04.5 Transport expenditure increased by 1.7% to €11.1 bn in 2019 (2018: +€357 m, 2017: +€338 m). Expenditure in COFOG group 04.8 R&D Economic affairs shows an increase of €389 m in 2018. This was particularly due to higher expenditure for research funding.
Expenditure in COFOG division 07. Health amounted to €32.9 bn in 2019 and therefore showed an increase of 3.8%. Expenditure in COFOG group 07.3 Hospital services added up to €18.5 bn in 2019, which represents an increase of 2.9% compared to 2018. Expenditure in COFOG group 07.2 Out-patient services rose by 5.8% to €6.1 bn in 2019. This increase was mainly due to higher expenditure for medical attendance, which is partly caused by the harmonisation of benefits of health insurance. Furthermore an increase in expenditure by 4.7% to €4.5 bn can be noticed in COFOG group 07.1 Medical products, appliances and equipment in 2019. This increase was mainly due to the rise in expenditure for drugs, therapeutic products and dental prostheses.
In COFOG division 09. Education expenditure rose by 3.1% to €19.0 bn in 2019. Expenditure in COFOG group 09.1 Pre-primary and primary education added up to €5.8 bn in 2019, which represents an increase of 4.1% compared to 2018.
An increase in expenditure by €2.3 bn can be noticed in COFOG division 10. Social Protection in 2019. This rise is almost the same as the one in COFOG group 10.2 Old age in 2019. In this COFOG group the rise of €2.1 bn in the year 2019 was mainly due to the increase of old-age pensions. Expenditure in COFOG group 10.4 Family and children decreased by €89 m in 2019. This can be attributed to lower expenditure for family allowances, which is partly caused by the reduction of family allowances for children of foreign employees working in Austria. A decrease in expenditure by €116 m can be found in this COFOG group in the year 2017. This can be explained with the expiration of the employees’ tax credit in the context of the tax reform 2016.
Expenditure in COFOG group 10.5 Unemployment decreased by €11 m in 2019. This was caused by a decrease in expenditure for unemployment benefits and emergency assistance. Expenditure in COFOG group 10.7 Social exclusion n.e.c. amounted to €3.9 bn in 2019 and is therefore approximately on the same level as in 2018. The developments in the respective COFOG groups led to a 3.0% increase in expenditure in COFOG division 10. Social protection from 2018 to 2019.
Besides the described developments in the individual divisions and groups, the annual increase in the individual divisions relative to the annual increase in total expenditure of general government is also relevant with respect to the percentage share of the COFOG divisions vis-à-vis total government expenditure. For instance, a decrease in COFOG division 01. General public services by €0.1 bn in 2019 resulted in a fall of 0.3 percentage points compared to 2018, as total expenditure of general government rose by €4.8 bn in 2019. On the other hand, the increase in expenditure in COFOG division 10. Social Protection by €2.3 bn led to an increase of 0.2 percentage points compared to 2018.
The expenditure and revenue of sector general government have to be shown as “consolidated”, i.e. intergovernmental flows are not depicted. In order to not affect the net lending/net borrowing as a result of this “consolidation”, intergovernmental expenditure of sector general government has to be identical to intergovernmental revenue. As this is not the case in practice a balancing mechanism – the so-called “consolidation adjustment” - is used: At the next highest transaction class level, the ratios “Current transfers within general government” to “Miscellaneous current transfers” and “Investment grants” to “Other capital transfers” are adjusted as necessary so that the figures may then be consolidated.
|Expenditure of general government by function (COFOG-divisions and groups in million €) 2016-2019|
|Expenditure of general government by function (COFOG-divisions in %) 2016-2019|
© STATISTICS AUSTRIA, Last Changed 30.09.2020