Baltic countries budgets comparison: who does each country spend the most on?

According to the report, total public spending in the European Union (EU) in 2019 amounted to 46.6%. gross domestic product. This ratio has not changed and is compared to last year. According to Eurostat reports, most of the state budget spending on social protection was recorded in Finland (24.0%) and France (23.9%).

Healthcare accounted for the largest share of funding in Austria (8.3%), Denmark (8.2%) and France (8.0%), while public services accounted for the largest share in Hungary (8.2 %), Greece and Finland (7.9% each). ). The highest spending on education in the EU was recorded in Switzerland (6.9%), Denmark (6.3%), Belgium (6.2%) and Estonia (6.0%).

In Lithuania: too much investment to maintain the population

In 2019, 34.5 percent was spent in Lithuania. funds to the country’s GDP. The largest expenditures in our country were on social security. Other key spending indicators in the country are similar to those of Estonia and Latvia, the main difference being that Lithuania spends less on education and more on health care.

Analyzing the financial statements, Artiomas Umanets, chairman of the board of directors of RIA.com Marketplaces, says that he sees the problem in Lithuania: “Even before the pandemic, a lot of money was spent on social support to keep increasing even more. It is still necessary to think about the future and other areas that need attention. “

Cost distribution:

• general public services: 3.5%;
• defense – 1.6 percent;
• public order and security: 1.4 percent.
• economy – 3 percent;
• environmental protection – 0.4 percent.
• renovation and environmental management: 0.5 percent;
• health care: 6.2 percent;
• recreation, culture and religion: 1.2 percent;
• education: 4.6 percent;
• social security – 12.3 percent.

Estonia spends more on science and education

In 2019, Estonia spent the majority of public funds on social security, health care and education. After calculating the total expenditure in 2019, it was established that 38.9% of the Estonian budget was allocated. GDP funds. According to A. Umanets, the state is doing the right thing by allocating investments in science and education, because new trained specialists in the future will help generate higher GDP.

Cost distribution:

• general public services: 3.5%;
• defense – 2.1 percent;
• public order and security: 1.8 percent.
• economy – 3.9 percent.
• environmental protection – 0.7 percent.
• renovation and environmental management – 0.4 percent.
• medical care: 5.3 percent.
• recreation, culture and religion: 2 percent;
• education – 6 percent;
• social security – 13.2 percent.

Latvia is also investing in education

In 2019, 38.4% was spent in Latvia. GDP funds. As in Estonia, there is also more funding for education: almost 6%. However, the main costs are covered by social security and are slightly lower than in Lithuania.

Cost distribution:

• general public services: 3.8 percent;
• defense – 1.9 percent,
• public order and security: 2.2%;
• economy – 5.3 percent;
• environmental protection: 0.6 percent;
• renovation and environmental management – 1%;
• health care: 4.2 percent;
• recreation, culture and religion: 1.5 percent;
• education: 5.8 percent;
• social security – 12.1 percent.

IT sector development is needed

According to A. Umanets, the coronavirus pandemic affected the economic indicators of all the Baltic States. Last year, two to three times more funds were allocated to healthcare than in 2019, but of all the EU countries, Estonia had the smallest drop in GDP.

According to the expert, by investing in education, the Baltic states are moving in the right direction, although Lithuania is still a bit behind its neighbors.

“Now more attention is needed for IT. There is a shortage of IT specialists in all the Baltic States and in recent years, more and more IT education programs are being created not only by the State, but also by private educational institutions.

For example, in Estonia, where in 2019 GDP grew by 4.3 percent, with the IT sector growing the fastest. This sector makes a significant contribution to the budget of the Baltic States, and there is fierce competition between Latvia, Estonia and Lithuania to attract IT specialists. In this sense, Latvia is one step ahead of other Baltic countries in terms of wage growth in the information technology sector, ”says A. Umanets.