Social protection accounted for a third of total government expenditure last year, followed by expenditure on public services, education and health.

Total government expenditure for 2013 was €3,196.3 million, an increase of €133.8 million compared with the previous year.

There were increases in social protection (€49.4 million) primarily observed on pensions, and in health (€38.4 million), mainly on hospital services. Additionally, economic affairs went up by €28.2 million as a result of a higher equity injection in Air Malta. Education increased by €23.5 million, mainly in tertiary and secondary education.

Partly offsetting these were a fall in general public services (€10.5 million) and housing and community amenities (€6.1 million).

With regard to expenditure by function as a percentage of total government
expenditure, the highest proportion in 2013 was on social protection (33.0 per cent), followed by public services (16.4 per cent), education (13.8 per cent) and health (13.5 per cent).

In contrast, expenditure on housing and community amenities had the lowest contribution to total expenditure followed by defence, representing 0.8 per cent
and 1.6 per cent respectively.

In total, government expenditure declined marginally to 42.4 per cent of GDP in
2013 from 42.5 per cent in 2012.

A more detailed breakdown of expenditure shows that for 2013, the largest expenditure was on old age pensions (€625.5 million), which represented 59.3 per cent of total expenditure on social protection, and on hospital services (€280.3 million), making up 64.8 per cent of total expenditure on health.

Moreover, considerable outlay was registered on public debt transactions (€223.3 million) and executive and legislative organs, financial, fiscal and external affairs (€196.6 million).

PUBLIC EXPENDITURE 'CONTAINED'

In a statement, the government said the figures showed how expenditure was being contained, while at the same time education, health, and social protection programmes were being sustained.

"These latest official figures further dismiss the Opposition’s claims on allegedly uncontrolled government expenditure due to higher outlay on recruitment in the public sector in its first year of government.

"On the contrary, the general government expenditure ratio has decreased. Expenditure is largely driven by increased commitments and resources in priority sectors and essential services."

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