Isabelle Chatry
Senior Policy Analyst
Decentralisation, public investment and subnational finance Unit
ESG/CFE, OECD
Panel 1
What are the public finance
challenges and constraints facing
local and regional authorities?
Subnational finance and investment ten years
after the crisis: Fiscal decentralisation and innovative public finance instruments as
the way ahead?
Changes in subnational goverment
revenue and expenditure 2000-2017
2
100
105
110
115
120
125
130
135
140
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
GDP SNG revenue SNG expenditure
1
Changes in subnational goverment
revenue and expenditure 2000-2017
3
100
105
110
115
120
125
130
135
140
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
GDP SNG revenue SNG expenditure
2
Changes in subnational goverment
revenue and expenditure 2000-2017
4
100
105
110
115
120
125
130
135
140
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
GDP SNG revenue SNG expenditure
3
Changes in subnational goverment
revenue and expenditure 2000-2017
5
100
105
110
115
120
125
130
135
140
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
GDP SNG revenue SNG expenditure
4
Changes in budget balance and debt
2000-2017
6
-2%
0%
2%
4%
6%
8%
10%
12%
14%
SNG budget balance SNG debt
Changes in budget balance and debt
2000-2017
2000 2001
2002 2003
2004 2005 2006
2007
2008
2009
2010 2011
2012 2013
2014
2015 2016
2017
8%
9%
10%
11%
12%
13%
14%
-1,0% -0,5% 0,0% 0,5% 1,0%
SNG
deb
t as
a %
of
GD
P
SNG budget balance as a % of GDP
Changes in subnational government expenditure in the EU28 from 2000 to 2017
In volume, base year 2000 = 100
95
105
115
125
135
145
155
165
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP Total ExpenditureDirect Investment Social BenefitsStaff Expenditure Intermediate Consumption
0.3%
0.7%
1.3%
2.4%
1.7%
4.7%
∆ 2017
Changes in total subnational expenditure 2007-2017
9
% Annual average change in real terms
IrelandHungary
GreeceCyprus
PortugalItaly
United KingdomCroatia
MaltaSpainLatvia
NetherlandsSlovenia
Czech RepublicLithuaniaFranceEstoniaEU28
FinlandAustriaDenmarkRomania
GermanyLuxembourg
SwedenBulgaria
PolandBelgium
Slovakia
-8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0
Changes in subnational social benefits 2007-2017
10
% Annual average change in real terms
No data for Cyprus and Malta
Czech RepublicHungary
CroatiaPortugal
ItalyIreland
SpainRomaniaEstoniaDenmark
United KingdomEU28GermanyAustriaGreeceSlovenia
FranceFinlandSlovakiaLithuania
LuxembourgSweden
BulgariaNetherlands
LatviaBelgium
Poland
-22.0 -20.0 -18.0 -16.0 -14.0 -12.0 -10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0
Changes in subnational staff expenditure 2007-2017
11
% Annual average change in real terms
HungaryIreland
United KingdomItaly
GreecePortugal
CyprusNetherlands
FinlandEU28LatviaDenmarkCroatia
SpainLithuaniaAustria
SloveniaGermany
SwedenBelgiumFranceLuxembourg
EstoniaCzech Republic
PolandMalta
SlovakiaBulgaria
Romania
-8.5 -7.0 -5.5 -4.0 -2.5 -1.0 0.5 2.0 3.5 5.0
Changes in subnational government direct investment in the EU28 (2007-2017)
12
% Average annual change in real terms
IrelandGreece
SpainMaltaCyprus
CroatiaItaly
RomaniaPortugal
LatviaLithuania
HungaryNetherlands
SloveniaFrance
EU28EstoniaBulgaria
PolandCzech Republic
AustriaUnited Kingdom
GermanySlovakiaBelgium
FinlandDenmarkLuxembourg
Sweden
-17.0 -15.0 -13.0 -11.0 -9.0 -7.0 -5.0 -3.0 -1.0 1.0 3.0 5.0 7.0
Changes in subnational government revenue in the EU28 between 2000 and 2017
In volume, base year 2000 = 100
95
100
105
110
115
120
125
130
135
140
145
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP Total Revenue Grants and Subsidies Tax Revenue Other revenues
4.0%
∆ 2017
1.9%
0.3%
1.0%
2.4%
Changes in total subnational government revenue 2007-2017
14
Annual average change in real terms (%)
IrelandHungary
GreeceUnited Kingdom
ItalyCyprusCroatiaPortugal
NetherlandsSpain
LatviaMaltaSlovenia
EU28Estonia
Czech RepublicFranceFinlandLithuaniaAustriaDenmark
LuxembourgRomaniaGermany
SwedenBelgiumBulgariaPoland
Slovakia
-8.0 -6.5 -5.0 -3.5 -2.0 -0.5 1.0 2.5 4.0%
Changes in grants and subsidies between 2007-2017
15
% Annual average change in real terms
IrelandHungary
GreecePortugal
United KingdomLatvia
CroatiaFrance
ItalyCyprus
SpainSlovenia
Czech RepublicEU28NetherlandsMalta
EstoniaLithuania
FinlandAustriaDenmark
RomaniaGermanyBelgiumLuxembourg
BulgariaSlovakia
PolandSweden
-11.0 -9.5 -8.0 -6.5 -5.0 -3.5 -2.0 -0.5 1.0 2.5 4.0 5.5
Changes in subnational government tax revenues 2007-2017
16
% Annual average change in real terms
Hungary
Cyprus
Ita ly
Slovakia
Croatia
Malta
Greece
Ireland
Romania
Spain
Slovenia
Portuga l
Estonia
Li thuania
Finland
Sweden
Austria
United Kingdom
Luxembourg
Denmark
EU28
Latvia
Germany
Netherlands
Czech Republic
France
Poland
Bulgaria
Belgium
-6.0 -4.5 -3.0 -1.5 0.0 1.5 3.0 4.5 6.0
THANK YOU [email protected]
