In 2012, LVL 2.2 billion were spent on social protection

25.11.2013

Provisional data compiled by the Central Statistical Bureau of Latvia show that, in 2012, social protection expenditure in Latvia comprised LVL 2 billion 171 million (EUR 3 billion 90 million) – LVL 20.5 million (EUR 29.2 million) more than in 2011. The data were calculated basing on the methodology developed by the Statistical Office of the European Union (Eurostat).

Social protection expenditure in Latvia according to ESSPROS[1] classification (mln LVL)

 

Currency

2010

2011

2012

(provisional data)

Changes in expenditure, 2012 over 2011, %

currency

%

Total expenditure on social protection

LVL

2 281.3

2 151.2

2 171.7

100.0

+1.0

EUR*

3 246.0

3 061.0

3 090.1

of which by function:

 

 

 

 

 

 

sickness/health care

LVL

467.4

450.2

468.9

21.6

+4.2

EUR

665.1

640.5

667.2

sickness/health care

LVL

172.0

183.8

189.6

8.7

+3.1

EUR

244.8

261.6

269.7

old-age

LVL

1 165.5

1 124.8

1 162.3

53.5

+3.3

EUR

1 658.4

1 600.5

1 653.8

old-age

LVL

38.3

36.7

34.8

1.6

-5.3

EUR

54.6

52.3

49.5

family/children

LVL

191.1

160.4

154.6

7.1

-3.6

EUR

271.9

228.2

219.9

family/children

LVL

167.5

101.4

79.5

3.7

-21.6

EUR

238.4

144.2

113.1

housing

LVL

18.2

21.1

20.5

0.9

-2.9

EUR

25.8

30.1

29.2

housing

LVL

30.4

36.3

29.8

1.4

-17.8

EUR

43.2

51.7

42.5

administrative costs**

LVL

30.5

36.1

31.3

1.4

-13.4

EUR

43.4

51.4

44.5

other expenditure

LVL

0.3

0.4

0.5

0.0

+23.9

EUR

0.4

0.5

0.7

* Data were recalculated into EUR basing on fixed exchange rate 1 EUR = 0.702804 LVL

**Administrative costs were calculated.

Due to the increase in State funding for outpatient and hospital health care, the most notable expenditure rise (of 4.2%) was recorded in health care. Mainly because of the higher expenditure on old-age pensions, the total expenditure on people at retirement age in 2012 grew by 3.3%. Share of expenditure on elderly population comprised more than a half (53.5%) of the total social protection expenditure.

In comparison with 2011, the most significant expenditure drop in 2012 was related with smaller support to unemployed persons (decrease of 21.6%), since the number of unemployed persons reduced, also expenditure on activities facilitating employment declined. Expenditure on unemployment benefits fell from LVL 44 million (EUR 62 million) in 2011 to LVL 41 million (EUR 58 million) in 2012.

During the time period from 2009 to 2011, expenditure on the reduction of social exclusion increased noticeably. Whereas in 2012, this expenditure decreased; and the drop was mainly affected by the decline in local government benefit for provision of guaranteed minimum income level (GMIB). Expenditure on GMIB reduced by 24%, and in 2012 it comprised LVL 17 million (EUR 24 million) (LVL 22 million (EUR 32 million) in 2011).

In compliance with the data of the Ministry of Welfare, the number of the monthly GMIB recipients has risen from 63 thousand persons in January to 41 thousand persons in December.

In 2012, social protection expenditure constituted 14.0% of the Gross Domestic Products (GDP) – 1.1 percentage point less than in 2011 (15.1% of GDP). In 2011, the average EU indicator accounted for 29.1% of the GDP.

 

More information:
Living Standard’s Statistics Section
Kārlis Smudzis
Tel. +371 67366948

 



1 European Statistics System every year complies and publishes harmonized data regarding expenditure on social protection in compliance with the ESSPROSS (European System of Integrated Social Protection Statistics) methodology developed by the Statistical Office of the European Union (Eurostat).In Latvia the compilation of data on social protection in accordance with the ESSPROS was started in 2004. Data on social protection expenditure are available on the CSB homepage. The information is compiled basing on the data provided by several state institutions.The ESSPROS expenditure is funded from the State and local government budgets, employers’ social contributions etc.