Public Spending is Inflexible

Public salaries exceed private

The growth of government expenses leads to the highest share of responsibility in the deterioration of public finances.

The weight of the remuneration

In 2014 ¢ 2.2 billion will be allocated to pay the remuneration of public employees.

It is an amount that grows more due to salary increases than by the creation of new jobs.

What's more, Public sector salaries are above those paid by private companies in similar categories.

According to the Treasury calculations, The differences between the salaries of the central government and those of the private sector range from 12% and 40%, with an average of 23%.

Transfers

The money that the Government transfers to pension regimes, Social universities and programs is another public spending engines.

In total, Current transfers added to 2012 an amount equivalent to 6,7% of GDP (Gross domestic product).

Fuente: The financial.

He liked the article? Like or share it with the buttons below. It is easy!

Your comments also interest me leave me one!

 

Leave a Comment

Positive Attitude is the difference between failing and being successful. Positive Attitude is the difference between failing and being successful *