European Union member states spend an average of 27 percent of GDP on social expenditures, compared to Hungary’s 16 percent, according to Eurostat data. Among other things, social expenses include family allowances and expenses related to child protection. As in the case of education, the situation is similar with social spending. Disadvantages suffered at an early age become more and more difficult to overcome over time. In the case of social spending, this means that the better the social safety net works, the easier it is to reduce the problems and difficulties affecting families. What is the impact of social spending on the functioning of a country and where does Hungary rank compared to other EU member states?
What affects the level of social spending?
With an adequate amount of family support, the deficits suffered at an early age can be reduced, which otherwise increase the chance of later financial and social deprivation. However, the government currently prefers income-related subsidies. These types of subsidies help those who already have a secure income – such as the family tax allowance. Or they have sufficient capital, for example, to use CSOK Plusz.
This puts families who are already in a difficult situation even more at a disadvantage.
Where does Hungary rank compared to other EU member states?
The ratio of Hungary’s spending on social benefits has not changed much in recent years. Whether we look at previous data, for example from 2014, or the relevant article of the G7, there are no outstanding changes. In 2021, the Hungarian government also spent the least on social protection compared to the other member countries. While the majority of member states spent the most proportionally on this.
Who spends the most?
France, Austria, Italy, Finland and Germany occupy the first places in the EU ranking in terms of spending on social expenses. While the countries at the bottom of the list spend an average of 16% of GDP proportionally on social benefits, the ratio at the top is around 30%.
How much do we spend on healthcare?
Unfortunately, even less. Eurostat data show that in 2022, the Hungarian government spent 4.7 percent of GDP on healthcare and patient care, the ratio being lower only in Bulgaria and Ireland, and the same amount in Lithuania. Among our neighbors, for example, 5.7 percent in Slovakia, while 8.5 percent in Austria, reports 24.hu.
