Variability of public expenditure structures: comparative analysis for Central and East European countries

Keywords: public spending, COFOG, public expenditure structure, Central and Eastern Europe

Abstract

The article presents a comparative analysis of the variability of public expenditure structures in Central and East European countries in the period 1995-2017. To measure the volatility, two indicators were proposed: one reflecting the variability of the expenditure structures, and the other reflecting the variability of each expenditure category. The above indicators allowed verification of the research hypothesis that the strongest changes in the structure of public spending occur in periods of economic recession and concern, in particular, expenditure categories having a direct impact on the economy. In the countries of Central and Eastern Europe, the largest variability in expenditure structure was demonstrated by countries with the lowest level of public expenditure in relation to GDP, which confirms that a small budget enforces its rationalization. In turn, the highest stability of the expenditure structure in the analyzed period was found in Poland, which may be associated with its smooth growth and subsequent avoidance of the economic recession. The group of expenditures that was most actively changed, both in the old and new EU member states, were expenditures on economic affairs.

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Published
2020-06-10
How to Cite
Mikołajczyk, K. (2020). Variability of public expenditure structures: comparative analysis for Central and East European countries. Scientific Journal of Warsaw University of Life Sciences - SGGW - European Policies, Finance and Marketing, (23(72), 134-145. https://doi.org/10.22630/PEFIM.2020.23.72.11