Public Expenditure

Topics: Economics, Recession, Lansdowne Road Pages: 6 (2503 words) Published: May 7, 2013
The aim of this essay is to demonstrate the government expenditure on sport from 2004 to 2012. We will separate the essay into three parts. In the first part, we will present the overall changes of capital and current expenditure in total voted account and sport account from 2004 to 2012 and analyze them briefly. In the second part, we will try to focus on greater details of the change of Sports and Recreation Services and analyze the reasons behind it. In the third part, we will focus on the relationship between participation and government sport expenditure an d discuss whether the government expenditure decisions were appropriate. Part 1

Source: Revised Estimates for Public Services, 2004-2012
Figure 1.1 presents the percentage changes of gross voted expenditure and total sports expenditure in the period 2004 to 2012. As it illustrates, both of them have an obvious increasing trend before 2008. Gross voted expenditure increased relatively constant by nearly 10% and expenditure on sport increased rapidly from 2006 to 2008. The increasing rate was average 20% per year. After 2008, there was a great drop, nearly 80%, in sport expenditure, meanwhile, gross expenditure began to fall at a smoothly rate, about 3%. In the following, we will dig what happened in 2008 and what caused such a dramatic alteration in sport expenditure? In 2008, the EU economic crisis broken out which driven the booming trend stopped. Moreover, due to the imbalanced development, for instance, bubbles in construction sector, induced the substantially growth in government debts. ((2012) The Irish economy in perspective) Irish government had to cut their total expenditure, so there was an inevitable reduction in sport expenditure. The total expenditure can be classified as either current or capital. Refer to capital expenditure; it is on items like buildings and facilities, while current expenditure is on items like wages and welfare payment. (Public Expenditure and Finance, p37) The following analysis will focus on both current and capital expenditure. According to the exchequer account on sports sector we can know that the Horse and Greyhound Racing Fund was removed from sport expenditure account after 2008. The funds on HGRF were mostly allocated in form of current and they occupied nearly 50% of the current account. Therefore, in order to eliminate the influence of removing HGRF, we put it back to sport account.

Source: Revised Estimates for Public Services, 2004-2012

Firstly, focusing on current expenditure on Figure 1.2 we can know that there is an adverse trend between the sport current expenditure and gross current expenditure after 2008. That is to say, the current expenditure on sport just occupied a small part of the total current expenditure so the change in sport current expenditure didn’t affect the overall trend of total current expenditure.

Source: Revised Estimates for Public Services, 2004-2012
Secondly, focusing on capital expenditure on Figure 1.3, we can see that there is a same trend between sport capital expenditure and total capital expenditure from 2004 to 2012, moreover, the decreasing gradient of these two after 2009 are all most the same. Therefore we could deduce that quite a part of the changes in total capital expenditure could attribute to the changes in sport capital expenditure. It is important to notice that there was a significant raise during 2006 to 2008 in sport capital expenditure, from 103% to 187%. After that the decreasing rate was nearly 110% in 2008. At the end of 2012, the sport capital expenditure was only 33% of that in 2004. After deep analyzing the sport account, we can notice that such a dramatic fluctuation from 2006 to 2011 could mostly attribute to a new Lansdowne road program. It began in 2005 and finished in 2010. The occupation of total sport expenditure on this program increased from 5% in 2005 to 30% in 2008 then fell to 1.3% in 2009. Jointing Figure 1.2 and 1.3, we...

References: * Federation of Irish Sports. (2008). BUDGET 2009 - 34% DROP IN FUNDING FOR SPORT [online]. Federation of Irish Sports. Available from: [Accessed 28 November, 2012].
* GoIreland(2011). Lansdowne Road to host the UEFA Cup Final in 2011 [online]. Dublin Travel Tipse. Available from: [Accessed 24 January, 2013] .
* GoIreland(2009). Lansdowne Road To Be Renamed Aviva Stadium [online]. Dublin Travel Tipse. Available from: [Accessed 24 January, 2013].
* Jerry Buttimer. (2010). Seanad Eireann Debate, Unrevised (Vol. 206 No. 2) [online]. Houses of the Oireachtas. Available from: [Accessed 28 November, 2012] .
* Sarah O’Connor, Roddy Guiney (2008). Future Funding of Irish Sport [online]. IRISH SPORT UNITES. Available from: [Accessed 25 January, 2013].
* Lunn.P & Layte. R, Irish sports monitor 2008 [online]. The Irish Sports Council. Available from: [Accessed 12 December, 2012]
* Lunn.P & Layte
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