Comparing Nordic countries

When comparing social expenditure in the Nordic countries with that of other EU member states, it must be noted that social cash benefits are often subject to tax in the Nordic countries, whereas parts of these benefits are exempt from tax in the other EU countries. In addition, several countries offer tax relief (tax reductions) for families with children, but this is not identified as social expenditure.

It should also be noted that the boundaries between the social and the education sectors vary from country to country. For example, in some European countries' children start school at an earlier age, which makes it difficult to compare expenditure on the minding of preschool children.

The OECD and EUROSTAT are in the process of developing models for the calculation of net social expenditure after tax.

Note also that the OECD calculations of expenditure in the healthcare sector differ considerably from the calculations in the ESSPROS system and in this report. In ESSPROS, efforts are made to obtain the most precise data possible on expenditure on social services to the elderly and the disabled.

However, in the OECD statements in A System of Health Accounts, these figures come under health expenditure. In addition, expenditure in ESSPROS is based on net calculations, while the OECD statements are based on gross expenditure i.e., including investments, user charges, etc.

Norway started using the national accounts as the basis for calculations of social expenditure in 2002, Iceland in 2007. This means that social expenditure from 2001 (Norway) and 2006 (Iceland) and earlier cannot be accurately compared with the data for later years.

In the 2004 report there is a detailed description of the earlier situation in Norway.