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Friday 17.11.2017 | Name days: Uga, Hugo, Uģis
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Less money spent on social benefits and pensions in 2011

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In 2011, expenditure on social protection in Latvia, comprised LVL 2 147.4 million or 15.0% of 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 the European Union, this indicator in 2010 on average comprised 29.4% of GDP.

74.6% of the total expenditure on social protection in 2011 was paid in cash, according to the data from the Central Statistical Bureau of Latvia.

Largest reduction in expenditure (of 39.5%) was related to the support for unemployed. The expenditure on unemployment benefits decreased from 89 million LVL in 2010 to 44 million LVL in 2011 (by 50.8%). The decrease was due to the reduction in the number 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 (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 – 1 046 million LVL. 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 (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% (18 million LVL in 2010 and 22 million LVL 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).

Ref: 102.109.109.4936


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