In COFOG division 01. General public services expenditure of general government increased by €235 m in 2020. This development is mainly due to the increase 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 2020. 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 €717 m can be found under General public services.
In COFOG division 04. Economic affairs expenditure of general government rose by €15.0 bn in 2020. An increase in expenditure by €13.7 bn in 2020 can be noticed in COFOG group 04.1 General economic, commercial and labour affairs. This is mainly due to the numerous subsidies in the context of the Corona support packages (short-term work scheme, fixed cost subsidy, turnover-substitute etc.). In COFOG group 04.5 Transport expenditure increased by 6.5% to €11.8 bn in 2020. This was caused by increasing gross fixed capital formation of the Austrian Federal Railways and by higher subsidies. Expenditure in COFOG group 04.8 R&D Economic affairs shows an increase of €355 m in 2020. This was particularly due to higher expenditure for research funding.
Expenditure in COFOG division 07. Health amounted to €34.8 bn in 2020 and therefore showed an increase of 5.3%. Expenditure in COFOG group 07.3 Hospital services added up to €19.4 bn in 2020, which represents an increase of 4.2% compared to 2019. In COFOG group 07.4 Public health services expenditure have almost doubled in 2020 as compared to the previous year. This is mainly due to expenditure for protective masks, protective clothing, tests and quarantine measures. Expenditure in COFOG group 07.2 Out-patient services rose by 1.2% in 2020, which represents a lower increase than in previous years. This development is partly due to a small decrease of expenditure for dental treatment and medical attendance.
In COFOG division 09. Education expenditure rose by 1.9% to €19.4 bn in 2020. Expenditure in COFOG group 09.1 Pre-primary and primary education added up to €6.0 bn in 2020, which represents an increase of 3.5% compared to 2019.
An increase in expenditure by €6.7 bn can be noticed
in COFOG division 10. Social Protection in 2020. In COFOG
group 10.2 Old
age the rise of €2.8 bn in the year 2020 was mainly due to the
increase of old-age pensions. Expenditure in COFOG group 10.4 Family and children rose by €1.0 bn in 2020. This can
be mainly attributed to expenditure for the family allowance child bonus
and the family hardship compensation in the context of COVID
Expenditure in COFOG group 10.5 Unemployment rose by €2.5 bn in 2020. This was caused
by an increase in expenditure for unemployment benefits and emergency
assistance as well as by a one-off payment to the unemployed and social
benefits in hardship cases in the context of COVID
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, an increase in COFOG division 04. Economic affairs by €15.0 bn in 2020 resulted in a rise of 5.5 percentage points compared to 2019, as total expenditure of general government rose by €24.4 bn in 2020. On the other hand, the increase in expenditure in COFOG division 10. Social Protection by €6.7 bn led to a decrease of 1.6 percentage points compared to 2019.
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.
© STATISTICS AUSTRIA, Last Changed 01.04.2021