February 14, 2006

The development of Dutch public expenditure since 1850.

Ontwikkeling collectieve uitgaven in beperkte mate bepaald door beleid

Press release
De Nederlandse collectieve uitgaven zijn gestegen van bijna 30 procent van het bruto binnenlands product (BBP) in 1950 naar ruim 60 procent BBP in 1983, om sindsdien weer te dalen tot onder de 50 procent BBP.

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Dick Morks

These developments are described by a breakdown into nine different expenditure functions, e.g. social security, education, health care, public administration and interest. For the period 1950-2003, also the importance of a wide range of determinants are investigated. It is argued that the reversal since 1983 was not only the consequence of government policy, like general moderation of wages, cuts in social benefits and subsidies, and strict budgetary policy. The impact of the strongly increased labour market participation of women, demographic changes, a decreasing rate of interest and a reduction of the military threat was even more important for this reversal. Furthermore, some shifts from public to private tasks, like the sale of equity stock and the abolition of collectively financed paid sick leave, have also lowered public expenditure.

This publication is in Dutch.


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