Expenditure

The expenditure of the Flemish authorities in 2022 was 54.65 billion euros. That is an increase of 8% compared to 2021 (in current prices (open definition)). This concerns ESA expenditure (open definition).

The strongest increase in expenditure in recent years occurred in 2015. Expenditure then rose by 36% due to the transfer of a number of federal powers to Flanders. On the basis of the 6^th state reform, powers were transferred in the areas of the labour market, family benefits, health care, justice and traffic.

Current expenditure made up 91% of Flemish expenditure in 2022. The remaining 9% was capital or investment expenditure.

In 2022, 26% of current expenditure was intended for the Flemish authorities itself (including interest). 32% went as transfers or subsidies to other authorities and 41% to other sectors. These are citizens, associations, companies and abroad.

Of the capital expenditure, 57% went to the Flemish authorities itself. 16% went as transfers or subsidies to other authorities and 27% to other sectors.

Education and social protection were the largest expenditure items of the Flemish authorities in 2022. They each accounted for 27% of expenditure. Economic affairs, including mobility, came in 3^rd place with 19%.

The expenditure of all municipal authorities (including districts) and PCSW’s of the Flemish Region amounted to 17.0 billion euros in 2022. This corresponds to just over 2,540 euros per capita.

Expenditure by municipal authorities and PCSW’s increased by 8% between 2021 and 2022.

Within local authorities, welfare associations (PCSW associations) have the highest expenditure after municipal authorities and PCSW’s. The expenditure of welfare associations in 2021 amounted to 1.3 billion euros or an average of 201 euros per capita.

After the municipal authorities and PCSW’s and the welfare associations, expenditure was highest at the level of autonomous municipal companies, the provincial authorities and the autonomous provincial companies. Their expenditure amounted to 1.3 billion, 1.1 billion and 168 million euros respectively.

Spending grew fastest between 2021 and 2022 at the level of welfare associations (+11%) and autonomous municipal companies (+8%).

Local authorities expenditure falls into 3 groups:

• operating expenditure: current expenditure for personnel, pensions and other operating costs
• capital expenditure
• financing expenditure, mainly loan repayments.

Financing expenditure is not included in the ESA expenditure of the Flemish authorities.

For local authoritiess, operating expenditure or current expenditure were the most important expenditure item. This is also the case with the Flemish authorities. Their share in total expenditure was largest in 2022 among the autonomous provincial companies (95%). This is followed by the welfare associations (87%), the provincial authorities (80%) and the municipal authorities/PCSW’s (79%). The autonomous municipal companies had the lowest share (75%).

Within operating expenditure, remuneration, social security contributions and pensions weighed most heavily. Expenditure on goods and services was only higher at autonomous municipal companies.

Investment expenditure had the greatest weight among the autonomous municipal companies, at 17% of expenditure. This was followed by the provincial authorities (16%) and the municipal authorities including PCSW’s (15%).

General authorities administration weighed most heavily on municipal authorities at 29% in 2022 expenditure. This was followed by social protection (15%) and recreation, culture and religion (13%). Among welfare associations, health (55%), social protection (23%) and general authorities administration (21%) dominated.

In 2022, the expenditure level of municipal authorities and PCSW’s varied between 1,218 euros and 5,131 euros per capita. Expenditure per capita was usually higher in the larger cities and in the coastal region. In more rural areas, spending levels are usually lower.