General government expenditure and revenue in the EU, 2006

European Commission Eurostat

Description

Economy and finance
Administration and staff regulations
Target audience: Specialised/Technical

Informations

• Publié par: EUROPEAN-COMMISSION-EUROSTAT
• Nombre de lectures: 9
• Langue: English

Extrait

Statistics in focus

ECONOMY AND FINANCE

23/2008

Authors Anne PATERNOSTER Monika WOZOWCZYK Alessandro LUPI

C o n t e n t s Highlights .................................. 1 Government revenue and expenditure by country ............ 2 Government expenditure, main components............................... 4

Government revenue, main components............................... 5 Government deficit and net saving......................................... 8 Link between saving and net lending/net borrowing ............ 10 Definitions ............................... 11 Manuscri pt completed on: 0  4.03.2008 Data extracted on: 25.05.2007 ISSN 19770316 Catalogue number: KSSF08023ENC © European Communities, 2008

Ge ne ra l gove rnm e nt e x pe ndit ure a nd re ve nue in t he EU , 2 0 0 6 z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z z

Highlights

•EU27 government expenditure represented 46.8% of GDP in 2006, Total the lowest ratio in five years; for the EA13 it amounted to 47.3% •and EA13 government revenue-to-GDP ratio reached 45.2% and EU27 45.7% respectively in 2006, the highest values in five years; •and EA13 government net lending/ net borrowing was at 1.6% of EU27 GDP in 2006, the lowest since 2002; •and EA13 government net saving in 2006 was positive for the first EU27 time since 2001; • Ten out of the 27 Member States (six out of the 13 members of the euro area) reported net lending in 2006, the highest number since 2001. Figure 1: Total government revenue and expenditure in % of GDP

49.0

48.0

47.0

46.0

45.0

44.0

43.0

2000 2001 2002 EU27 general government revenue in % of GDP EA13 general government revenue in % of GDP

2003

2004 2005 2006 EU27 general government expenditure in % of GDP EA13 general government expenditure in % of GDP

Source: Eurostat, Economy and finance, Government statistics.

Government revenue, expenditure and deficit/surplus are concepts used to analyse fiscal policy. The Maastricht Treaty stipulates that Member States shall “regard their economic policies as a matter of common concern”, and Article 104 of the Treaty on European Union obliges Member States to avoid excessive government deficits, including the possibility of financial sanctions. The protocol on the Excessive Deficit Procedure, annexed to the Treaty, defines two criteria and reference values for compliance. These are a government deficit to Gross Domestic Product (GDP) ratio of 3 per cent, and a government debt to GDP ratio of 60 per cent.

In the framework of the ESA 95 transmission programme, European Union Member States have reported, in most cases, their half-finalized general 1 government expenditure and revenue data for 2006 , as well as data on net lending/ net borrowing that underlie the definition of government deficit/surplus for the reporting of EU Member States under the Excessive Deficit Procedure (EDP). 1 Commission Regulation (EC) No 1500/2000 implementing Council Regulation (EC) No 2223/96. Reporting of European System of Accounts (ESA 95) transmission table 2 by Member States to Eurostat is at t+3 and t+9 months. These data correspond to the end-September 2007 transmission.