Total resources devoted to social protection in the A.C. of the Basque Country in 2003 reached the figure of 9,505 million euros, which is to say 19.2% of GDP, according to EUSTAT data.

Of the total amount of expenditure on social protection, the value of social benefits, representing 98% of expenditure, came to 9,296 million euros in 2003 and has not failed to grow since 1995, the first year for which data on the social protection account of the A.C. of the Basque Country is available. With regard to 2002, the increase was 8.3% and in the period covering 1995 to 2003 there was an accumulative annual increase of 6.6%.

Comparing these results with those of the State as a whole offers us a panorama of important differences. Total expenditure on social benefits per inhabitant was greater in the A.C. of the Basque Country throughout this period. Furthermore, the difference has widened over time, so that while in 1995 expenditure on benefits per inhabitant in the A.C. of the Basque Country was 9% higher, by 2003 this figure was 24%.

In turn, investment in social protection, measured by the proportion of GDP devoted to the social protection of its inhabitants, has traditionally been lower in the A.C. of the Basque Country than in Spain, although the difference has lessened over recent years, especially from 2000 onwards.

If the comparison is made with the European Union (EU-15), we see a gradual narrowing of the gap as regards European levels of expenditure per inhabitant: whereas in 1995 this indicator put the A.C. of the Basque Country at just over 65% of the Union average, in 2003 the same index exceeded 75%. However, if this coming together of expenditure per inhabitant is valued keeping the levels of investment in mind (in percentage of GDP), the differences remain to a significant extent with the gap not actually narrowing.

Expenditure on social benefits is divided into eight functions, the most significant of which are old age and illness/healthcare.

Expenditure carried out in the old age function, which, apart from pensions, includes other benefits such as home care or accommodation for the elderly, came to 4,265 million euros. For people aged 65 or over, it came to 11,145 euros. After eliminating the effect of prices, the purchasing value of old-age benefits per person in this age group grew at a rhythm of 1.1% per year between 1995 and 2003.

A similar analysis of the illness/healthcare function reveals an average annual rise of 4.3% in the value of benefits per inhabitant in the A.C. of the Basque Country between 1995 and 2003.

The evolution of expenditure on unemployment was quite different during the period under analysis. Resources dedicated to people out of work reduced in absolute terms. However, the fall in the number of jobless was sharper, so that the real value of benefits per person registered with the National Employment Office (INEM) rose appreciably at an annual rhythm of 4.1%.

The highest accumulative annual growth rates for the period 1995-2003 were seen in the functions of social exclusion (12.6%), family/children (11.9%) and housing (10.0%).