Comparing Public Spending and Priorities Across OECD Countries

At the heart of progressivism is the belief that government--not big government, or small government, but effective government--has a critical role to play in ensuring the well being of its citizens. Public spending serves an important function in pursuing economic growth objectives while ensuring that gains are widely distributed to promote broad-based increases in living standards. But governments' relative fiscal positions, how much they spend, and the composition of that spending is likely to make a difference in achieving these objectives. Member countries of the Organization for Economic Cooperation and Development--an international organization consisting primarily of developed, free-market economies--vary significantly in (1) their relative fiscal positions, or deficits and surpluses; (2) their amount of public spending; and (3) how they allocate spending across different categories to reflect priorities. This descriptive study examines how OECD countries have addressed the current economic situation through their fiscal balance sheets, and then goes on to consider similarities and differences in public spending across OECD countries through the prism of economic and social objectives. Countries are compared according to three relative measures of government spending: spending as a share of GDP, spending per capita, and spending by category as a percentage of total government expenditure.