General Government expenditure rises to €8.64 billion in 2024, reaching 37.4% of GDP

Total General Government expenditure increased by €1,154.3 million in 2024 when compared with the previous year, reaching €8,640.6 million, according to data published by the National Statistics Office. When measured as a share of the economy, government spending rose to 37.4 per cent of Gross Domestic Product, up from 35.8 per cent in 2023.

The data, compiled using the Classification of the Functions of Government (COFOG) framework, provides a breakdown of how public expenditure was allocated across key policy areas during the year. Social protection remained the largest area of spending, accounting for €2,258.5 million, or 26.1 per cent of total General Government expenditure. This represented an increase of €259.9 million over 2023, with the main rise recorded in social benefits, which grew by €185.2 million.

Expenditure on Economic affairs increased by €267.8 million to €1,753.2 million in 2024, making it the second-largest functional category and accounting for 20.3 per cent of total outlay. This included a €156.0 million equity injection into the national airline, classified as capital transfers, alongside €235.3 million in subsidies. A further €115.0 million was allocated towards energy infrastructure projects nationwide.

Spending on Health rose to €1,155.2 million, representing 13.4 per cent of total expenditure, while General public services amounted to €1,146.3 million, or 13.3 per cent. Education expenditure also increased significantly, reaching €1,092.1 million in 2024. The year-on-year rise in education spending amounted to €229.0 million and was primarily driven by higher compensation of employees, which increased by €126.6 million following the implementation of a new collective agreement in the sector.

Despite remaining the largest spending category, the share of Social protection in total expenditure declined by 0.6 percentage points compared with 2023. Defence continued to represent the smallest share of General Government expenditure at 1.4 per cent, followed by Housing and community amenities at 1.7 per cent.

When expenditure is analysed as a proportion of GDP, the increase to 37.4 per cent in 2024 marked a reversal of the downward trend observed in recent years. By comparison, General Government expenditure amounted to 35.8 per cent of GDP in 2023, 38.3 per cent in 2022 and 39.5 per cent in 2021. The rise in 2024 reflects both higher nominal spending and its relative expansion compared with economic output.

A breakdown of expenditure by economic category shows that a substantial share of government outlay in 2024 consisted of compensation of employees, which accounted for 25.8 per cent of total expenditure. Social benefits in cash and in kind represented 21.2 per cent, intermediate consumption stood at 19.8 per cent, while gross capital formation accounted for 8.5 per cent of total spending.

At a more detailed level, the largest second-level COFOG expenditure item was Old age, which amounted to €1,366.4 million and represented 15.8 per cent of total General Government expenditure. This was followed by Hospital services, which totalled €646.4 million, equivalent to 56.0 per cent of all Health-related spending. Transport expenditure reached €636.6 million, while €617.0 million was spent on Executive and legislative organs, financial, fiscal and external affairs.

The National Statistics Office noted that all figures are compiled in line with the European System of Accounts 2010 and remain provisional, meaning they may be subject to revision.