Funkcinių valstybės išlaidų elementų ekonominės struktūros įtaka šalies ekonominiam augimui
The impact of economic composition of functional public expenditures components on the economic growth

Summary/Abstract: This paper analyses the importance of public expenditures classification not only by functions, but also by economic categories. Other research papers analyse the importance of public expenditures volume on the economic growth. Recently, the composition of public expenditures has become the focus of attention. However, most scientists consider only functional classification of public expenditures, conducting the analysis of the public expenditures composition. The novelty of this paper might come in view through the analysis of the public expenditures composition as we use not only functional, but also economic classification. According to the functional public expenditures classification, productive and non-productive expenditures are distinguished. Productive public expenditures are those that might stimulate the economic growth. The problem is that productivity levels of functional components of public expenditures are not examined. The statement, saying that some functional component of public expenditures is non-productive, is very abstract. The measurement of non-productivity level of some nonproductive functional component of public expenditures would give us more thorough information. The aim of this paper is to evaluate the productivity levels of functional components of public expenditures according to the economic classification. Analysing other research papers, it was determined that such economic components of public expenditures as “wages and social insurance”, “usage of goods and services”, “asset cost”, “subsidies”, “grants” and “social benefits” are nonproductive, that is, those components might have the negative impact on the economic growth. “Contribution to European Union budget”, “Financial support and general sponsorship, transferred to EU” and “other expenditures” are determined to be neutral as their nature is of political, not economic, decisions. Other expenditures simply can not be defined. “Transactions concerning tangible and intangible assets and the implementation of financial liabilities” is the only productive economic component of public expenditures as this component is determined to be capital expenditures that naturally have positive impact on the economic growth. Analysing non-productivity levels of non-productive functional public expenditures components, it was noticed that the most non-productive functional components are “social protection”, then “general public services” and then “recreation, culture and religion”. Analysing productivity levels of productive functional components of public expenditures, it was noticed that they are not so productive if we consider only productive economic expenditures. If we assume that productivity level consists of productive and neutral expenditures, then the most productive functional components are “housing and community amenities”, then “health”, then “environmental protection” and then “economic affairs”. “Defence”, “public order and safety” and “education” have high non-productivity levels, however, theoretically they are determined to be productive. In our previous research paper we found out that “public order and safety” and “education” have negative impact on GDP growth. As we measured productivity levels of these functional components, it is more obviously why such negative statistical relation was found.

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