Latest publication Government at a Glance Publication Indicators General government deficit General government revenue General government spending General government spending by destination General government debt General government financial wealth Government production costs Government reserves Central government spending Trust in government. My pinboard Add this view Go to pinboard.
Countries Highlighted Countries Highlight countries Find a country by name. This correlation reflects the fact that high-income countries tend to have more capacity to extract revenues, which in turn is due to their capacity to implement efficient tax collection systems. In our entry on Taxation we discuss the drivers of tax revenues in detail.
The visualization shows the reduction of inequality that different OECD countries achieve through taxes and transfers. The estimates correspond to the percentage point reduction in inequality, as measured by changes in the Gini coefficients of income, before and after taxes and transfers.
The IDD provides further details regarding how these estimates are constructed. The data shows that across the 35 countries covered, taxes and transfers lower income inequality by around one-third on average equivalent to around 0.
Generally speaking, countries that achieve the largest redistribution through taxes and transfers tend to be those with the lowest after-tax inequality. The main source of cross-country data on aggregate government expenditures is the IMF.
According to the IMF, government expenditure is calculated as the sum of all cash payments for operating activities of the government in providing goods and services, including compensation of employees such as wages and salaries , interest and subsidies, grants, social benefits, and other expenses such as rents and dividends.
The most important limitation with the estimates produced by the IMF is that, despite their efforts to standardize data collection, many countries report misclassified, incomplete, and untimely statistics. The lack of consistent data on local government expenditures often makes cross-country comparisons difficult. Because of this, many studies rely on central government estimates, even though these estimates provide an incomplete picture, especially in federal countries.
Because budgetary accounts may not include all central government units such as social security funds , they usually provide an incomplete picture. The chart provides a comparison of two cross-country measures of government expenditure. The first measure, in the horizontal axis, corresponds to the World Development Indicators, and as mentioned above, corresponds mainly to central government spending.
The second measure, in the vertical axis, corresponds to the depurated estimates from Mauro et al. As we can see, while the two measures are correlated, they are still substantially different. A big part of the difference between these two measures can be attributed to the fact that one of them accounts only for central government expenditures — indeed, most countries lie above a line with slope one, which suggests that local government expenditure is not negligible.
There remains a few countries where there is significant mismatch between total and central government spending- in the case of Costa Rica and Afghanistan, central spending appears to exceed total government spending. In both countries, there appears to be notable inconsistencies both in terms of budget allocation and actual funds distribution between governmental and sub-national entities, and the approval process for spending autonomy by decentralised institutions.
The above-mentioned limitations are substantially less critical for estimates reported to the OECD by member countries, mainly because they tend to apply more rigorously the agreed international conventions and accounting methods — including a consistent accounting of expenditures across sectors and levels of government.
However, for countries that are not members or partners of the OECD, the data limitations are severe, and cross-country comparisons over time have to be interpreted with caution.
You can read about these sources, including their relationship and limitations, in our entries on Financing Healthcare and Financing Education. For example, the estimates of government expenditure as a share of GDP in Zimbabwe and Palestine are in the thousands for several years.
In such complicated cases it would be better not to report estimates — even more so considering that the SPEED database reports regional and global averages that are not country-weighted.
History of government spending. Government spending in early-industrialised countries grew remarkably during the last century. Click to open interactive version. Public spending growth in early-industrialised countries was largely driven by social spending.
Government spending across the world. Composition of government expenditure. Governments differ substantially not only in size, but also in priorities. High-income countries spend more on social protection than low-income countries.
The proportion of government spending that goes towards social protection varies substantially across OECD countries. How do OECD countries distribute their allocations to social spending? Employee compensation accounts for a large share of public spending in many low-income countries. Public procurement. Procurement plays an important role in government expenditure. Procurement is more than subcontracting large infrastructure projects. Immigration Find data on a range of immigration issues, including information on asylum seekers, DACA, visas, plus border security.
Race in America Data shines a spotlight on racial inequities in American life. Articles Economy What is inflation and how is it measured? Population How the Native American population changed since the last census.
View More. View All. Budget How much does the government spend and where does the money go? Share On. Ninety-one percent came from individual income, payroll, and corporate income taxes. Share this fact. Mandatory spending is skyrocketing, because more baby boomers are reaching retirement age.
By , one in five Americans will be older than Interest from the Social Security Trust Fund pays for the rest. The costs will outpace interest and income by At that time, Social Security benefits will begin draining the general fund. It also means that Congress can no longer "borrow" from the Social Security Trust Fund to pay for other federal programs. The rest comes from premiums and the general fund. Departments of Justice. These estimates will increase if interest rates rise.
Congress decides how much to appropriate for these programs each year. It's the only government spending that Congress can cut. There is an additional fund for emergencies. Congress allocates this outside of the budget, subject to sequestration. It's spread out among different agencies and budget categories, so you must add it all together.
It includes:. Other important federal government functions receive even less funding. The White House. Page Accessed March 29, Federal Reserve Bank of St.
Fiscal Policy: Reality and Outlook ," Page 1. House Committee on the Budget.
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