development report 2012 - UMAR

Development Report 2012
Development by the priorities of SDS – An efficient and less costly state
49
Tabela 5: General government expenditure on social benefits by function 125 , structure in % %
Functions 2000 2005 2006 2007 2008 2009 2010
Healthcare 9.4 10.4 10.7 10.7 10.5 10.5 10.0
Medical products, appliances and equipment 5.9 6.5 6.5 6.3 6.0 5.8 5.5
Outpatient services 3.5 3.8 4.2 4.4 4.4 4.7 4.5
Education 1.3 1.6 1.4 1.5 1.7 1.7 1.7
Social protection 89.2 87.9 87.8 87.7 87.8 87.7 88.2
Sickness and disability 13.7 14.2 14.0 13.9 13.8 12.7 12.8
Old age 56.3 55.1 49.7 50.7 50.7 49.9 49.5
Survivors 2.2 2.3 9.1 9.0 9.3 8.6 8.5
Families and children 10.2 9.6 9.6 9.6 10.1 10.6 10.5
Unemployment 4.8 3.5 2.3 1.9 1.7 3.1 3.7
Social benefits 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: General government expenditure by function, Slovenia, 2011 (SORS); calculations by IMAD.
In 2010, and according to our estimates also in 2011,
social benefits in cash and kind 126 maintained their
considerable upward trend, which is due to a rapidly
growing number of beneficiaries. This expenditure
rose by 2.2 p.p. of GDP in 2009, also as a result of a fall
in GDP, which was followed by another rise of 0.7 p.p.
of GDP in 2010. Despite a rapid upward trend, the level
of expenditure in 2009 was considerably below the EU
average level (Slovenia: 18.9%; EU: 21.7%). The swift
growth in expenditure on social benefits was a respond
to a high increase in expenditure on unemployment,
illness and disabilities and some other minor groups
(e.g. in education, for housing). The accelerated growth
in expenditure on unemployment had been anticipated
given that the number of the unemployed significantly
rose since the onset of the economic crisis. Owing to
a still relatively low level of the unemployment rate in
Slovenia compared to the EU, this expenditure, as a share
of total benefits, is below the EU average. The increase in
expenditure on sickness benefits is most likely associated
with the employment uncertainty and the unfavourable
situation on the labour market; this expenditure ranks
Slovenia in the middle of EU Member States. As a share
of total benefits, expenditure on old age accounts for
the greatest share, representing half of all benefits; in
recent years, its share has recorded a downward trend.
In 2009, expenditure on old age increased substantially
(by 9.2%) in nominal terms, which is a consequence
of a growing number of beneficiaries and higher
payments; its growth in 2010 (3.5%) was restricted by
an intervention law and was almost entirely due to a
growing number of beneficiaries. In terms of expenditure
on old age relative to GDP, Slovenia is ranked in the
middle of EU Member States. The rise in the number
of beneficiaries and their pressure on expenditure was
to be mitigated by pension reform, which was rejected
in the 2011 referendum. The groups of survivors and
125
The data comprise social benefits, with the exception of
social transfers in kind, and those social transfers in kind that
refer to expenditure on products allocated to households by
market producers.
126
The COFOG methodology has been applied. In the area of social
benefits in cash and kind, there are also other methodologies.
families and children represent an important share in
total expenditure on social benefits. Its growth was high
mainly in 2009 because of extraordinary disbursements
to mitigate the consequences of the crisis; in 2010,
the growth was considerably slower and, owing to the
intervention restrictions, dependent particularly on the
growing number of beneficiaries. In terms of the levels
of both kinds of expenditure relative to GDP, Slovenia
is ranked relatively high among EU Member States. The
implementation of the 2010 adopted Exercise of Rights
to Public Funds Act (Uradni list RS [Official Gazette of
the Republic of Slovenia], no. 62/2010) was postponed
several times in 2011.
Expenditure and other instruments provided by the
state strongly support fixed capital formation which in
2009 stood at the relatively high level of 2008 despite a
slight decrease in nominal terms, but fell substantially
in 2010 and 2011. In 2009, gross capital formation
decreased slightly in nominal terms (by EUR 22 million),
but owing to a decline in GDP, its share of GDP (4.7%)
was the highest since 2005. In total expenditure, gross
capital formation lost 0.6 p.p. (2009: 9.4%). In 2010, it fell
in nominal terms by EUR 106 million but remained at
the relatively high level of 2007 (4.3% of GDP), which is
one of the highest shares recorded among EU Member
States. It represented 8.6% of total expenditure, which
was, however, much less than the level in 2007 (10.0%).
Until 2005, gross capital formation on average ranked
just above 3% of GDP annually but it then began to
rise quite rapidly. Its rapid growth was mainly due to
the funding obtained from EU structural funds under
EU Financial Perspective 2007–2013 allowing Slovenia
to draw considerable financing support. Pre-accession
assistance was noticeably lower in the period until 2006.
In 2011, gross capital formation dropped significantly
(EUR 250 million or 0.7 p.p. of GDP). With its 3.6% share of
GDP, it still exceeds the EU average level (2009); however,
besides some developed EU Member States 127 , almost all
new Member States have left Slovenia in their wake.
127
These are Ireland, Luxembourg, the Netherlands; Sweden
records the same level.