Archive · 7 Aug 2026
Kiribati tops IMF government spending ranking; India spends 28.4%
Governments around the world spend money on things like schools, hospitals, roads and the army.
This news article compares how much countries spend compared to how much their whole economy makes in a year.
A small island country called Kiribati spends almost as much money as its entire economy is worth.
That is 98.1 percent of its GDP.
It spends so much because it receives a lot of foreign aid and grants from other countries.
Rich countries in Europe, like Finland and France, also spend a large share of their economic output on public services.
India spends about 28 percent of its GDP on government programs.
The United States spends about 38 percent, China spends 33 percent, and South Korea spends about 22 percent.
Spending a lot of money does not always mean a country is doing a great job.
What matters is how wisely the money is used.
Kiribati ranks first globally with government expenditure equal to 98.1 percent of its GDP, according to IMF data.
The Marshall Islands (71.6 percent) and Ukraine (71.3 percent) rank second and third, followed by Finland, France and Micronesia.
Small island nations rank high because foreign aid and international grants fund a significant share of public services and development projects.
India spends 28.4 percent of its GDP, while the United States spends 37.9 percent, China 33 percent and South Korea 22.5 percent.
Higher government spending does not necessarily indicate better outcomes; the composition and effectiveness of spending also matter.
- Who
- Governments of countries compared by the International Monetary Fund, including India, the United States, China and European welfare states.
- What
- A comparison of government expenditure as a share of GDP, with Kiribati at 98.1 percent and India at 28.4 percent.
- When
- Not specified in the article; based on data from the International Monetary Fund.
- Where
- Globally, covering Kiribati, the Marshall Islands, Ukraine, European nations and major economies including India.
- Why
- To show how differently countries allocate public money and to examine whether higher spending leads to better outcomes.
- Top spender
- Kiribati (98.1% of GDP)
- Second highest
- Marshall Islands (71.6% of GDP)
- Third highest
- Ukraine (71.3% of GDP)
- India
- 28.4% of GDP
- United States
- 37.9% of GDP
- China
- 33% of GDP
- South Korea
- 22.5% of GDP
- Data source
- International Monetary Fund (IMF)