Government Expenditures on Household Consumption – Level, Changes, and Their Relationship With Socio- -Economic Development Indicators in European Countries

Abstract

Aim: The aim of this article is to examine changes in government expenditures on household consumption in European countries and the relationship of these expenditures with socio-economic indicators. Methods: The study is based on data analysis from 36 European countries, using the Eurostat database and various rankings such as the Happiness Index, Human Development Index, Sustainable Development Goals, and Social Progress Index. The analysis focused on the trends in government expenditures on household consumption and aimed to explore the association between these expenditures and socio-economic indicators. Results: Significant changes in the share of government expenditures on household consumption in the GDP were observed among the studied countries during the period from 2011 to 2022. Some countries increased their expenditures, while others decreased them. Cluster analysis revealed four groups of countries based on the share of government expenditures on household consumption in GDP. Conclusions: There was no direct correlation between the level of government expenditures on household consumption and socio-economic indicators among the studied countries. Instead, variations in socio-economic development were observed among different groups of countries, regardless of the level of government expenditures on household consumption.