New report analyses composition of public expenditure

The Jersey Government publishes a wide range of statistical information. Most recently, a new report The Jersey Classification of the Functions of Government Report 2022 was published on 21 November 2023.

Notwithstanding its convoluted title and the fact that it has yet to find its way on to the statistics page of the Government’s website it contains a wealth of new analysis of public expenditure by the Jersey Government.

The report classifies government expenditure in accordance with the United Nations Functions of Government system. The system enables comparisons to be made between jurisdictions and over time.

The report shows that in 2022 health, education and social protection accounted for 73% of Jersey government expenditure and 19% of gross value added (GVA).

A comparison with the UK shows –

• Total government expenditure was 25.5% of GVA in Jersey, less than half the UK figure of 53.9%. In almost every category of expenditure the Jersey proportion was below the UK proportion. However, it is also necessary to compare actual levels of expenditure. Using 2021 figures for both jurisdictions, Jersey’s GVA per capita was 60% higher than the UK’s. Expenditure per capita was £13,800 in Jersey, 16% less than the UK figure of £16,400.
• As a proportion of total government expenditure the main differences are in defence (0.1% in Jersey as against 4.5% in the UK) and economics (largely to support particular industries) (4.5% as against 12.5%).

The report gives a wealth of detailed information, which will facilitate a better understanding of government expenditure. Over time comparisons with other jurisdictions will also be useful. Neither Guernsey nor the Isle of Man currently produce comparable figures.

The Policy Centre’s Knowledge Centre paper on public finances has been updated to include a section on the new report.

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