Governments Misspend More Than Half Of Our Taxes--Global Poll
September 27, 2010
People believe that their government misspends more than half the money they pay in tax, according to the findings of a
new BBC World Service global poll across 22 countries--but many are still looking to government to play a more active
economic role.
The poll of more than 22,000 people, conducted by GlobeScan/PIPA, found that people estimated on average that 52 per
cent of the money they pay in tax is not used in ways that serve the interests and values of the people of their
country.
Despite this lack of trust in government to spend tax money responsibly, the poll found on some measures there is a near
global consensus for increased government action. Nearly four in five around the world (78%), and majorities in all but
one of 22 countries polled, think that government should subsidise food to keep prices for the consumer down, with only
18 per cent disagreeing. Two-thirds overall (67%), and majorities in 19 out of 22 countries, think that government
regulation and oversight of their national economy needs to be increased--the US, Turkey and Spain are the only
exceptions.
Other government interventions achieve slim majority support. In 14 of 22 countries most people--on average 56 per
cent--favour an increase in government spending to stimulate the economy. This includes large majorities of Egyptians
(91%), Mexicans (80%), Russians and Indonesians (both 78%), and Nigerians (73%). But majorities are opposed in a number
of industrialised countries that had large stimulus programmes--Germany (66%), France (63%) and the US (58%).
On average 51 per cent also want their government to take steps now to address their deficit and debt, while 39 per cent
are opposed. The United Kingdom is among the countries where support for deficit reduction measures is higher, at 60 per
cent. Asked whether they would prefer their government to focus on tax rises or service cuts in dealing with their
country's deficit and debt, in every country but Egypt more people said they preferred a focus on cutting services (on
average 54%) than on increasing taxes (14%).
The results show that people who think a large proportion of their taxes are misspent are also less supportive of their
government taking steps to address the deficit. While among those who estimate a third or less is misspent, a majority
of 57 per cent is in favour of taking action on the deficit and debt, those who estimate that two-thirds or more of
their taxes are misspent are divided (45% in favour, 45% opposed).
Providing financial support to banks in trouble is only supported by forty-four per cent on average of those polled --
lower than for any other government action measured in the poll. A total of 14 countries have majorities opposing more
bank bailouts, but eight countries are in favour.
The results are drawn from a survey of 22,783 adult citizens across 22 countries. It was conducted for BBC World Service
by the international polling firm GlobeScan together with the Program on International Policy Attitudes (PIPA) at the
University of Maryland. GlobeScan coordinated fieldwork between June and September 2010. Full-sample results are
considered accurate within +/- 2.1 to 3.5 per cent 19 times out of 20. Some questions were asked of half samples.
Doug Miller, GlobeScan Chairman comments, "As countries struggle to achieve economic recovery, citizens want more active
government, but also more effective government intervention in the economy to meet the real needs of citizens, including
stabilising food prices."
Steven Kull, PIPA's Director, adds: "Beliefs that the government misspends public moneys may arise from perceptions of
corrupt government officials, from perceptions of special interests having undue influence, or from repeatedly hearing
opposition parties assert that the party in power is wasting their money."
Detailed Findings
The countries with the lowest average estimate of misspent tax money were Spain (average 34% misspent), Indonesia (40%),
Azerbaijan and Egypt (both 42%). The highest were in Columbia (74% misspent) and Pakistan (69%). In the world's two
largest economies, Americans estimate on average that 55 per cent of their taxes are misspent, while in China the figure
is 46 per cent.
Despite low overall support, there is strong backing for government bank bailouts in major developing nations like India
and Nigeria (77%), the Philippines (75%) and China (59%). But the world's major developed economies have majorities
opposed to further government bank bailouts--including Germany (84% opposed), Canada (77%), France and the US (both
68%).
As well as being less likely to support action to address the deficit, those who have the highest estimates of tax
misspending are less likely to support government stimulus spending--among those who think that more than three-quarters
of their tax money is misspent, only 47 per cent believe the government should spend to stimulate the economy.
The poll also asked consumers to say whether they expected their nation to experience good or bad economic times over
the next year, and reveals that consumer expectations remain subdued, particularly in the world's major economies. On
average across 21 countries over the next year only 30 per cent expect good times. Twenty-six per cent expect bad times
and 36 per cent expect equally good and bad times. Among the 17 countries polled in 2009 and 2010, there was only a
slight increase (two points) in those expecting good times and slight decrease (three points) in those expecting bad
times.
In only five countries is the dominant view that in the next 12 months good times will return. All of these are
developing countries led by India (62%), Nigeria (61%), and Brazil (57%), as well as China (51%) and the Philippines
(43%).
The most pessimistic countries--those predominantly expecting bad times--are led by the developed countries of the
United Kingdom (58%), France (54%), and also include the US (44%), and Spain (38%)--although numbers of pessimists in
Spain have dropped 19 points since 2009. However some developing countries lean toward a pessimistic view as
well--Mexico (54%), Pakistan (45%), and Turkey (41%).
In total 22,783 citizens in 22 countries, were interviewed face-to-face or by telephone between June 24 and September 5,
2010. Some questions were asked of half samples. Polling was conducted for BBC World Service by the international
polling firm GlobeScan and its research partners in each country. In nine of the 22 countries, the sample was limited to
major urban areas. The margin of error per country ranges from +/-2.1 to 3.5 per cent, 19 times out of 20.
For more details, see the Full Report (PDF)
ENDS