This is a continuation from the previous article (Part 1) where I analyzed government spending of individual countries that are of the top economies. The data is from IMF. For definitions, explanations, nuances about the data please check article Part 1.
In Part 1, we covered the introduction, category details, and analyses for the United States, China, Germany, Japan, the United Kingdom, and France. Now, we continue with Italy, Russia, Canada, Brazil, Spain, and Australia. These countries offer further insights into how global powers allocate resources, often reflecting unique historical, economic, and social contexts.
Remember, social protection typically dominates, but variations highlight national priorities. Let’s proceed.
Italy Government Spending Analysis
Italy’s data spans 1995 to 2023. Social protection leads at over 32%, followed by general public services, health, and education. The composition is constant with slow trends and occasional small, drastic changes.
Line charts show social protection rising to 2020, then dipping sharply. General public services decline steadily. Housing and community amenities and economic affairs rise post-2020. Health increases to 2005, flats, then declines slowly from 2020. Others remain flat.
Italy’s emphasis on social protection aligns with its welfare state, but declining general services suggest efficiency drives. Post-pandemic shifts indicate recovery focus on housing and economy.
Russia Government Spending Analysis
Russia’s dataset covers 2000 to 2020 (missing 2007). Dynamics abound: social protection dominates, followed by general public services, economic affairs, and education. Health is low for a major category; defense and public order and safety are high for minors. In 2015, general public services hit 39%.
Line charts reveal rising social protection with dips in 2002, 2008, 2014, 2019. General public services peaks in 2002, 2008, 2015; dips in 2005, 2010, 2018. Economic affairs dips in 2006, 2015, peaks in 2014; health peaks 2005-2006. Environmental protection flats at 0%; others dynamic.
Russia’s volatility reflects geopolitical and economic shifts, like oil prices or sanctions. High defense spending underscores security focus.
Canada Government Spending Analysis
Canada’s data is from 2008 to 2024. Social protection exceeds 27%, followed by health, general public services, education, and economic affairs. Stable, except 2020 pandemic spike in social protection to 35%.
Line charts show 2020 peaks in social protection and economic affairs, dips in health and general public services. Economic affairs gradually rise since 2018; general public services decline slowly; social protection rises gradually.
Canada’s balanced approach emphasizes welfare and health, with pandemic responses boosting social aid. Trends suggest aging population influences.
Brazil Government Spending Analysis
Brazil’s dataset runs 2010 to 2024. Social protection tops 31%, followed by general public services, health, education, public order and safety, and economic affairs. Stable, with 2020 social protection surge.
Line charts: social protection rises since 2015, peaks 2020; general public services peaks 2015, declines to 2020 dip. Others consistent.
Brazil’s focus on social protection addresses inequality; declines in general public services may indicate fiscal reforms.
Spain Government Spending Analysis
Spain’s data covers 1995 to 2024. Social protection over 32%, followed by health, general public services, economic affairs, and education. Consistent, except 2012 economic affairs rise.
Line charts: social protection inclines since 2008. Economic affairs peaks 2012, smaller in 2021-2022. The 2012 peaks was primarily driven by substantial aid channeled to the financial sector for bank recapitalization through the Fondo de Reestructuración Ordenada Bancaria (FROB) in response to the ongoing crisis. Health, economic affairs, general public services moderate dynamics; others flat.
Spain’s welfare emphasis, with economic spikes during crises like 2008 recession and pandemic, shows responsive budgeting.
Australia Government Spending Analysis
Australia’s dataset is from 1999 to 2022. Social protection over 25%, closely by health, then education, economic affairs, and general public services. Consistent, with pattern shift in 2009-2010.
Line charts: social protection slowly declines, with a peak in 2009. Health slowly increases since 2002; education peaks 2010-2011; economic affairs peaks 2020-2021. General public services decline slowly; others flat.
Australia effectively balances investments in welfare and health, with observed shifts likely influenced by adaptations in its resource-driven economy, such as mining exports.
South Korea Government Spending Analysis
South Korea’s data is limited to 2009-2010. Social protection is 20-22% (lower than typical 30%), economic affairs 22-24% (higher than peers), defense 9-10% (higher than peers). Other majors align closely.
With short data, trends are hard to spot, but lower social protection, higher economic affairs and higher defense reflect geopolitical tensions and export-driven economy. This suggests focus on security and growth over extensive welfare.
Turkey Government Spending Analysis
Turkey’s dataset spans 2008 to 2024. Social protection over 20%, followed by health, general public services, economic affairs, and education. Stable, except 2022-2023 surges in economic affairs and general public services, compressing social protection and health.
Line charts: prominent 2022-2023 dynamics; general public services decline 2008-2012. Others dynamic (especially health) but even out.
Turkey’s composition reflects emerging market priorities, with recent shifts possibly from Turkish lira depreciation, escalating debt servicing cost and 2023 earthquake.
Indonesia Government Spending Analysis
Indonesia’s data is from 2008 to 2023. Unlike others, general public services dominate, followed by education and economic affairs. Social protection under 12%. Shift in 2015-2016 shrinks general public services.
In the line charts illustrating trends from 2015 to 2016, general public services decline, while nearly all other categories (except environmental protection and culture) increase—with economic affairs beginning its upward trend in 2015. Education, however, remains largely stable overall.
Indonesia’s unique pattern emphasizes administration and education for development, low social protection due to informal economy.
Netherlands Government Spending Analysis
The Netherlands’ data covers 1995 to 2022. Social protection over 34%, followed by health, general public services, economic affairs. Consistent post-1995 abrupt change.
Line charts: housing and community amenities drop 1995-1996; health and social protection increase gradually; general public services decrease. Economic affairs rise post-2020.
The Netherlands’ welfare focus, with post-pandemic economic boosts, highlights efficient, trade-oriented policies.
Poland Government Spending Analysis
Poland’s data is from 1995 to 2022. Social protection over 35%, followed by general public services, education, health, and economic affairs. Gradual dynamics, exceptions in 1996 and 2020.
Line charts: even overall; economic affairs increase gradually since 2004 with 1996, 2020 spikes; general public services decrease. Others even.
Poland’s high social spending reflects EU integration and welfare expansion.
Overall Insights from All 17 Countries
Across the 17 top economies, social protection is generally highest, followed by general public services, health, education, and economic affairs. The 2020 COVID pandemic impacted many, with varied responses: some boosted social protection, others economic affairs, a few unchanged.
Notable distinctions: U.S. prominent defense; Indonesia high general public services, low social protection. General public services tend to decrease gradually.
These patterns raise questions: What drives drastic changes? How do systems and ideologies shape compositions? Future articles could explore.
This series illuminates global spending trends, aiding understanding of economic strategies.
By: Nugroho Budianggoro
Cover photo by Zeynep Sude Emek