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Tuesday 18.06.2019 | Name days: Madis, Alberts
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Social protection expenditures up 5% in Latvia

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn 2017 social protection expenditure in Latvia accounted for EUR 3 974.8 million and, compared to 2016, it has grown by EUR 188.5 million or 5.0 %. Expenditure on survivors function rose by 10.5 %, on sickness and heath care by 6.8 %, and on disability function by 4.9 %.

In 2017, the most notable increase was recorded in expenditure on survivors function, which mainly is related to the rise in state benefit for children that have lost their provider. The minimum size of survivor’s pensions, state social insurance benefit and compensation for the loss of a provider were increased as of the April 2017, according to data from the Central Statistical Bureau of Latvia.

The second largest expenditure growth was recorded in sickness/ health care function. Last year, expenditure on primary and outpatient health care went up by 12.0 %, reaching EUR 283.3 million, while expenditure on sickness benefits rose by 7.7 %, reaching EUR 145.2 million, which was influenced by the increase in the average size of sickness benefit to be paid.

Last year, expenditure on disability function (except for the payments related to health care) grew by 4.9 %. Due to the changes in procedure how the damage compensations for participants of the Chernobyl NPS accident consequence liquidation or their dependant incapable family members are calculated, the expenditure on these compensations rose 2.8 times (from EUR 1.8 million in 2016 to EUR 5.2 million in 2017).

In 2017, social protection expenditure constituted 14.7 % of GDP, which is 0.4 percentage points less than in 2016 (15.1 %). For comparison, in 2016 social protection expenditure in Estonia comprised 17.1 % of the GDP and in Lithuania 15.4 %.

Every year, the European Statistics System compiles and publishes harmonised data regarding expenditure on social protection in compliance with the ESSPROS methodology developed by the Eurostat. 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. In Latvia, the data on social protection are compiled in accordance with the ESSPROS starting from 2004, using information provided by various public authorities.


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