Press Release

In 2018, social protection expenditure increased by 11.5 %

Provisional data of the Central Statistical Bureau (CSB) show that in 2018 Latvian social protection expenditure accounted for EUR 4 440.2 million and, it has grown by EUR 457.9 million or 11.5 %, compared to 2017. Expenditure on sickness and heath care grew by 20.2 %, on family and children by 9.8 %, and on unemployment by 9.7 %.

 

Social protection expenditure in Latvia 
(million euros annually)

 

2016

2017

2018

(provisional data)

Changes in 2018, compared to 2017 (%)

million EUR

%

Total expenditure on social protection

3 793.4

3 982.4

4 440.2

100.0

11.5

sickness/ health care

933.2

996.4

1 198.1

27.0

20.2

disability

338.5

355.2

381.2

8.6

7.3

old-age

1 786.0

1 869.6

2 028.2

45.7

8.5

survivors

44.7

49.4

54.2

1.2

9.6

family/ children

414.9

430.6

472.7

10.6

9.8

unemployment

173.9

176.2

193.3

4.4

9.7

housing

19.8

18.7

17.1

0.4

-8.6

social exclusion

27.0

27.7

29.6

0.7

6.8

administrative costs (estimated)

54.5

57.4

64.6

1.5

12.5

other expenditure

0.9

1.1

1.1

0.0

1.4

 

The largest expenditure growth was recorded in sickness/ health care function. Last year, expenditure on inpatient health care went up by 36.3 %, reaching EUR 363 million, while expenditure on sickness benefits due to the increase in the average size of sickness benefit to be paid rose by 9.8 %, reaching EUR 165.1 million.

The second largest expenditure increase was recorded in family/ children function. As of 1 March, supplement to the state family allowance for bringing up two or more children was introduced, and the total expenditure on this allowance grew by 39.8 % (from EUR 77.9 million in 2017 to EUR 108.8 million in 2018). Rise in the expenditure on family/ children function was also influenced by the increase in the amount of state guaranteed maintenance paid by the Maintenance Guarantee Fund – the total expenditure on maintenance went up by 20.4 %, reaching EUR 49.6 million.

In 2018, upturn (of 9.7 %) was recorded in expenditure on benefits for unemployed persons (mainly unemployment benefit and severance pay paid by the employers). Expenditure on unemployment benefits due to the rise in the average size of the unemployment benefit grew by 6.3 %, reaching EUR 119.9 million, while expenditure on severance pay increased by 35.8 %, reaching EUR 39 million.

In 2018, social protection expenditure constituted 15.2 % of the gross domestic product (GDP), which is 0.3 percentage points more than in 2017 (14.9 %). For comparison, in 2017 social protection expenditure in Estonia comprised 16 % and in Lithuania 15.1 % of the GDP.

The data on the Latvian social protection expenditure are compiled since 2004 based on the European system of integrated social protection statistics (ESSPROS) methodology. The methodology is aimed at compiling internationally comparable information on expenditure on social protection allocated to state and local government budgets to meet the social protection needs of residents.

 

Media requests:
Communication Section
E-mail: media@csb.gov.lv
Phone: +371 67366989, +371 27880666

More information on data:
Kārlis Smudzis
Social Statistics Data Compilation and Analysis Section
E-mail:
Karlis.Smudzis@csb.gov.lv
Phone: +371 67366948

 

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