Utilisation of 350 billion SEK in the Swedish public sector

Abstract

Sweden has the largest public sector in the western world. It has been estimated that in 1990 public expenditure will amount to 62% of the GNP compared with 43% in the OECD countries. Sweden has chosen to allow the public sector, on national, regional and local levels, to administer, produce and distribute welfare services such as education, child care, the care of the elderly, medical services and social insurances. Today it is generally agreed that the public sector cannot continue to grow. It has been estimated that total expenditure in the public sector in 1990 will amount to 800 billion SEK. Of this amount, transfers, mainly social insurances, account for 400 billion SEK, investments for 40 billion SEK and consumption for 350 billion SEK.