Analytics, Budget, Latvia, Society, Statistics

Social protection expenditure in Latvia 

(mln euros annually)

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 mln, 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 mln.

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 mln in 2017 to EUR 108.8 mln 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 mln.

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 mln, while expenditure on severance pay increased by 35.8%, reaching EUR 39 mln.

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.