Social protection expenditure in 2011

23.11.2012

Data of the Central Statistical Bureau show that, in 2011, expenditure on social protection in Latvia, in compliance with the ESSPROS methodology, comprised LVL 2 147.4 million or 15.0% of the GDP – a reduction of 2.8 percentage points, as compared to 2010 (17.8% of the GDP). In comparison with 2010, the volume of expenditure on social protection in 2011 diminished by 5.9%.In European Union this indicator in 2010 on average comprised 29.4% of the GDP.

Expenditure on social protection in Latvia, 2005 - 2011
(mln LVL)

Expenditure on social protection (mln LVL)

 

2008

2010

 2011

(provisional data)

Growth in expenditure in 2011

over 2010

%

mln LVL

%

Total expenditure on social protection

2 043.1

2 281.3

2 147.4

100.0

- 5.9

of which by function:

 

 

 

 

 

sickness/health care

591.4

467.4

450.2

21.0

-3.7

disability

147.3

172.0

183.8

8.6

+6.8

old-age

875.7

1165.5

1124.2

52.3

-3.6

survivors

38.9

38.3

36.7

1.7

-4.3

family/children

223.9

191.1

157.5

7.3

-17.6

unemployment

82.3

167.5

101.3

4.7

-39.5

housing

27.6

18.2

21.2

1.0

+16.7

social exclusion

18.2

30.4

36.1

1.7

+19.0

administrative costs

37.1

30.5

36.1

1.7

+18.5

other expenditure

0.7

0.3

0.4

0.0

+27.1

74.6% of the total expenditure on social protection in 2011 was paid in cash.

Largest reduction in expenditure (of 39.5%) was related to the support for unemployed.The expenditure on unemployment benefits decreased from LVL 89 millionin 2010 to LVL 44 millionin 2011 (by 50.8%). The decrease was due to the reduction in the umber of unemployment benefit recipients (60 thousand at the end of 2010, 35 thousand at the end of 2011), as well as due to the Law "On payment of state pensions and state allowances during time period from 2009 till 2012” adopted on 16 June 2009 that requires the limitations to the size of the unemployment benefit granted and paid.

Rapid reduction (of 17.6%) was recorded also in the part of expenditure related to family and children.This drop was due to the requirement on limitation to state benefit payment stipulated by the above law.

Most part (52.3%) of the expenditure on social protection was received by population at retirement age.93% of this expenditure were formed by old-age pensions – LVL 1 046 million. If compared to 2010, total expenditure related to the payment of pensions in 2011 diminished by 3.6%, and that was mainly due to the execution of the Constitutional Court judgement, as sums withheld in 2009 were paid to the old-age pension recipients in 2010.

Most notable rise in expenditure (of 19.0%), as compared to 2010, was recorded for the decreasing of social exclusion - benefits in a form of cash or paid goods or services.The expenditure rise in this function mainly was influenced by the growth in local government benefit for provision of Guaranteed Minimum Income Benefit (henceforth GMIB).The expenditure on GMIB grew by 19.0% (LVL 18 million in 2010 and LVL 22 million in 2011).Nevertheless the number of GMIB recipients gradually reduced (from 71 thousand in January to 64 thousand in December) the number of GMIB recipients in March reached the highest level (80 thousand persons).

 

Prepared by the Living Standard’s Statistics Section
Kārlis Smudzis
Tel. 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 Communities (Eurostat).Social protection benefits are classified in compliance with the main aim or function, e.g., “old age”.In Latvia 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 home page.The information is compiled basing on data provided by various state institutions.The ESSPROS expenditure is funded from the State and local government budgets, employers’ social contributions etc.