09/26/15 09:41
(http://www.klassa.bg/)
(http://www.klassa.bg/)
BGN 7,690.8 mn allocated from Bulgaria state budget to finance social protection
Financing of the social protection system in the Republic of Bulgaria is realized either through social security contributions or through direct funding from the state budget. In 2013, BGN 7,690.8 million was allocated from the state budget to finance social protection in the country while the receipts of social protection contributions amounted to BGN 7,746.0 million. Compared to previous year, an increase of 2.1 percentage points of the receipts from social protection contributions is observed at the expense of contributions from the state budget which decreased with 2.3 percentage points, Bulgaria’s National Statistical Institute (NSI) said in a press release.
In 2013, Bulgaria spent BGN 14,452.6 million for social protection which represented around 17.6% of the gross domestic product for the same year. Expenditure on social benefits remained with the highest share of total expenditures (96.3%). Administration costs and other expenditures amounted respectively for 2.3 and 1.5% of total expenditures.
Social protection benefits
The ‘Old age’ function with its major component expenditure for pensions had the highest share (43.3%) in total expenditures. The ‘Sickness/Health care’ function also had a significant share (24.9%) of total expenditures.
The predominant form of receipt of social benefits was the payment of cash benefits (periodic or lump sum). In 2013, expenditures for cash benefits amounted to BGN 9,765.2 million or 70.2% of total expenditures on social protection benefits.
Over 60% of the cash benefits were paid under the ‘Old age’ function (Table 3) and most of them were not associated with the requirement to cover any additional conditions on their receipt (i.e. they are non-means tested) as a result of participation in the social protection system. Benefits paid under ‘Disability’ and ‘Family/Children’ functions also took a big share of total expenditures on social protection benefits.
In 2013, expenditures on benefits in kind amounted to BGN 4,148.3 million, or they were 5.2% more than in 2012. Highest (over 75%) was the share of benefits in kind under ‘Sickness/Health care’ function.
Changes in the social protection system in Bulgaria over the years can be traced by functions and benefits included in them.
Sickness/Health care’ function
The following social protection benefits are included in the ‘Sickness/Health care’ function: ‘cash benefits that replace in whole or in part loss of earnings during temporary inability to work due to sickness or injury; medical care provided in the framework of social protection to maintain restore or improve the health of the people protected’.
In 2013, BGN 3,592.1 million was paid under the ‘Sickness/Health care’ function or 25.8% of the total social protection expenditure. Expenditures on cash benefits (periodic and lump-sum) represented 9.8% of total benefits paid under this function. Periodic cash benefits cover paid leave due to accident at work, occupational disease or sickness, as well as benefits for disability due to sickness. Lump sum benefits were provided to children below 18 years of age for medical treatment abroad.
Benefits in kind paid in 2013 amounted to BGN 3,241.5 million and covered all payments made by the National Health Insurance Fund, as well as payments on Health care services agreed by additional health insurance. In 2013, their share of total expenditures paid under the function was 90.2%.
‘Disability’ function
The ‘Disability’ function covers benefits that: provide an income to persons below standard retirement age as established in the reference scheme whose ability to work and earn is impaired beyond a minimum level laid down by legislation by a physical or mental disability; provide rehabilitation services specifically required by disabilities; provide goods and services other than medical care to disabled people.
In 2013, BGN 1,133.6 million was paid under the ‘Disability’ function or 8.0% of total social protection expenditure. 82.2% of the benefits paid under this function were in cash. Periodic cash benefits covered disability pensions, supplement for personal assistant and monthly supplements for integration of disabled people. The disability pensions had a prevailing share (69.9%) of the cash benefits under the function while monthly allowances for social integration of the handicapped represented 14.7%. Lump-sum benefits amounted to 45.4 Million BGN and were intended to finance employment projects for disabled people, as well as allowances for deaf or blind people.
Expenditures on benefits in kind in 2013 amounted to BGN 201.5 million or 17.8% of total social protection expenditure paid under this function. The main share of expenditures was that of expenditure on Homes for disabled elderly people, Homes for children and Social-educational establishments classified as expenditures for accommodation. Benefits in kind also covered benefits for assisting daily activities (Social patronage and different other social services), rehabilitation and daily centers for disabled persons.
‘Old age’ function
The ‘Old age’ function covers the provision of social protection against the risks linked to old age: loss of income, inadequate income, lack of independence in carrying out daily tasks, reduced participation in social life, etc. This function covers benefits that:
• provide a replacement of income when the aged person retires from the labor market;
• guarantee a certain income when a person has reached a given age;
• provide goods or services that are specific to the personal or social conditions of life of the elderly.
The expenditures under this function had the biggest share of total social protection expenditures (about 43% for the period 2011 - 2013). This function included all types of pensions granted after reaching the standard retirement age. In 2013, BGN 6,263.1 million was paid under the ‘Old age’ function from which BGN 6,257.3 million was cash benefits connected to the participation in the social contribution system (i.e. non-means tested) and BGN 5.7 million was cash benefits for the obtaining of which apply certain conditions (i.e. means-tested).
In 2013, BGN 35.3 million was paid under the ‘Old age’ function for benefits in kind (expenditures on Homes for elderly and Daily centers for elderly) or 0.1% of total expenditures paid under the function.
‘Survivors’ function
The ‘Survivors’ function includes benefits that:
• provide temporary or permanent income to people who have suffered from the loss of the spouse or a next-of-kin, usually when the latter represented the main breadwinner for the beneficiary;
• compensate survivors for funeral costs and for any hardship caused by the death of a family member.
Survivors eligible for benefit may be the spouse or ex-spouse of the deceased person, his or her children, grandchildren, parents or other relatives. Benefits provided under the function are non means-tested.
In 2013, BGN 798.3 million was paid under the ‘Survivors’ function or 5.7% of total social protection expenditures. The following are included in the function: survivors’ pensions, supplement to the pension in case of death spouse, as well as lump sums provided to survivors of a death person who has insured him or herself at Universal/Professional pension fund.
There were no expenditures for benefits in kind under the ‘Survivors’ function.
‘Family/Children’ function
The ‘Family/Children’ function includes cash benefits in the event of childbirth, leave for bringing up a child, family and child allowances, birth grants. Benefits in kind relate to allowances for pupils at first grade of primary school, expenditure on crèches and social allowances in kind provided by the employers.
In 2013, the expenditures on benefits under the ‘Family/Children’ function were 10.5% of total social protection expenditures. The total amount of social protection benefits paid under the function was BGN 1,464.8 million and compared to previous year increased by 6.6%. The ‘Family/Children’ function was characterized by a higher percentage of benefits provided based on a certain criteria for eligibility. In 2013, BGN 414.4 Million or 28.3% of social protection expenditures paid under the function were allocated for means-tested cash benefits. Benefits granted without fulfilling any special conditions included benefits for pregnancy and childbirth, paid parental leave, allowances for bringing up handicapped child and birth grants. BGN 528.5 million was paid for this kind of benefits.
Benefits in kind paid under the function ‘Family/Children’ in 2013 amounted to BGN 521.9 million or 35.6% of total social protection expenditures paid under the function. Compared to the previous year the amount of benefits in kind increased by 8.9%.
‘Unemployment’ function
The ESSPROS Manual defines benefits under the ‘Unemployment’ function that: ‘replace in whole or in part income lost by a worker due to the loss of gainful employment; provide a subsistence (or better) income to persons entering or re-entering the labor market; compensate for the loss of earnings due to partial unemployment; contribute to the cost of training or re-training people looking for employment; help unemployed persons meet the cost of travelling or relocating to obtain employment; provide help and relief by providing appropriate goods and services’.
In 2013, BGN 442.7 million was paid under the function ‘Unemployment’ or 3.1% of total social protection expenditure. Compared to the previous year, the social protection expenditures under this function decreased by 5.4%.
The share of lump-sum cash benefits of the cash benefits provided under this function decreased from 13.8% in 2012 to 12.5% in 2013, or by 1.3 percentage points.
Benefits in kind refer to the active measures at the labor market and include expenditure on engagement of unemployed persons at place different from their usual residence, expenditure on education and services connected to demanding and offering employment. The share of benefits in kind decreased from 9.4% in 2012 to 9.2% in 2013 or by 0.2 percentage points.
Housing’ function
‘Housing’ function is based on mediation of public authorities and aims to help households in meeting the cost of housing. An essential criterion for defining the scope of the ‘Housing’ function is the existence of qualifying means-test for the benefit.
In Bulgaria such benefits are provided in kind. Data is presented on rent benefit provided to single parents, elderly persons over 70 years of age who live alone, as well as to orphans who have completed social educational institutions. The protected dwellings provided to poor families are also included into this function. In 2013, BGN 9.5 million was paid for benefits in kind. Compared to the previous year their amount increased by 6.2%.
‘Social exclusion not elsewhere classified’ function
While the above mentioned functions refer to people subject to clearly identifiable risks or needs (the elderly, the disabled, the unemployed, etc.), the present function refers to the ‘socially excluded’ or ‘those at risk for of social exclusion’. The concept of social exclusion is multidimensional: it first refers to an insufficient level of income (poverty), but also to precarious situations in the field of health, education and employment.
In 2013, BGN 209.3 million was paid under the function or 5.8% more than for the previous year. BGN 111.5 million was allocated for cash benefits or 53.3% of total social protection benefits paid under the function. Compared to the previous year, the funds allocated to cash benefits increased by 1.1% and their share of total social protection expenditures decreased by 2.5 percentage points.
The total amount of paid benefits in kind in 2013 was BGN 97.8 million and it increased by 11.8% compared to the previous year. Their share of total expenditures under the function was 46.7% or 2.5 percentage points more than in 2012.
In 2013, Bulgaria spent BGN 14,452.6 million for social protection which represented around 17.6% of the gross domestic product for the same year. Expenditure on social benefits remained with the highest share of total expenditures (96.3%). Administration costs and other expenditures amounted respectively for 2.3 and 1.5% of total expenditures.
Social protection benefits
The ‘Old age’ function with its major component expenditure for pensions had the highest share (43.3%) in total expenditures. The ‘Sickness/Health care’ function also had a significant share (24.9%) of total expenditures.
The predominant form of receipt of social benefits was the payment of cash benefits (periodic or lump sum). In 2013, expenditures for cash benefits amounted to BGN 9,765.2 million or 70.2% of total expenditures on social protection benefits.
Over 60% of the cash benefits were paid under the ‘Old age’ function (Table 3) and most of them were not associated with the requirement to cover any additional conditions on their receipt (i.e. they are non-means tested) as a result of participation in the social protection system. Benefits paid under ‘Disability’ and ‘Family/Children’ functions also took a big share of total expenditures on social protection benefits.
In 2013, expenditures on benefits in kind amounted to BGN 4,148.3 million, or they were 5.2% more than in 2012. Highest (over 75%) was the share of benefits in kind under ‘Sickness/Health care’ function.
Changes in the social protection system in Bulgaria over the years can be traced by functions and benefits included in them.
Sickness/Health care’ function
The following social protection benefits are included in the ‘Sickness/Health care’ function: ‘cash benefits that replace in whole or in part loss of earnings during temporary inability to work due to sickness or injury; medical care provided in the framework of social protection to maintain restore or improve the health of the people protected’.
In 2013, BGN 3,592.1 million was paid under the ‘Sickness/Health care’ function or 25.8% of the total social protection expenditure. Expenditures on cash benefits (periodic and lump-sum) represented 9.8% of total benefits paid under this function. Periodic cash benefits cover paid leave due to accident at work, occupational disease or sickness, as well as benefits for disability due to sickness. Lump sum benefits were provided to children below 18 years of age for medical treatment abroad.
Benefits in kind paid in 2013 amounted to BGN 3,241.5 million and covered all payments made by the National Health Insurance Fund, as well as payments on Health care services agreed by additional health insurance. In 2013, their share of total expenditures paid under the function was 90.2%.
‘Disability’ function
The ‘Disability’ function covers benefits that: provide an income to persons below standard retirement age as established in the reference scheme whose ability to work and earn is impaired beyond a minimum level laid down by legislation by a physical or mental disability; provide rehabilitation services specifically required by disabilities; provide goods and services other than medical care to disabled people.
In 2013, BGN 1,133.6 million was paid under the ‘Disability’ function or 8.0% of total social protection expenditure. 82.2% of the benefits paid under this function were in cash. Periodic cash benefits covered disability pensions, supplement for personal assistant and monthly supplements for integration of disabled people. The disability pensions had a prevailing share (69.9%) of the cash benefits under the function while monthly allowances for social integration of the handicapped represented 14.7%. Lump-sum benefits amounted to 45.4 Million BGN and were intended to finance employment projects for disabled people, as well as allowances for deaf or blind people.
Expenditures on benefits in kind in 2013 amounted to BGN 201.5 million or 17.8% of total social protection expenditure paid under this function. The main share of expenditures was that of expenditure on Homes for disabled elderly people, Homes for children and Social-educational establishments classified as expenditures for accommodation. Benefits in kind also covered benefits for assisting daily activities (Social patronage and different other social services), rehabilitation and daily centers for disabled persons.
‘Old age’ function
The ‘Old age’ function covers the provision of social protection against the risks linked to old age: loss of income, inadequate income, lack of independence in carrying out daily tasks, reduced participation in social life, etc. This function covers benefits that:
• provide a replacement of income when the aged person retires from the labor market;
• guarantee a certain income when a person has reached a given age;
• provide goods or services that are specific to the personal or social conditions of life of the elderly.
The expenditures under this function had the biggest share of total social protection expenditures (about 43% for the period 2011 - 2013). This function included all types of pensions granted after reaching the standard retirement age. In 2013, BGN 6,263.1 million was paid under the ‘Old age’ function from which BGN 6,257.3 million was cash benefits connected to the participation in the social contribution system (i.e. non-means tested) and BGN 5.7 million was cash benefits for the obtaining of which apply certain conditions (i.e. means-tested).
In 2013, BGN 35.3 million was paid under the ‘Old age’ function for benefits in kind (expenditures on Homes for elderly and Daily centers for elderly) or 0.1% of total expenditures paid under the function.
‘Survivors’ function
The ‘Survivors’ function includes benefits that:
• provide temporary or permanent income to people who have suffered from the loss of the spouse or a next-of-kin, usually when the latter represented the main breadwinner for the beneficiary;
• compensate survivors for funeral costs and for any hardship caused by the death of a family member.
Survivors eligible for benefit may be the spouse or ex-spouse of the deceased person, his or her children, grandchildren, parents or other relatives. Benefits provided under the function are non means-tested.
In 2013, BGN 798.3 million was paid under the ‘Survivors’ function or 5.7% of total social protection expenditures. The following are included in the function: survivors’ pensions, supplement to the pension in case of death spouse, as well as lump sums provided to survivors of a death person who has insured him or herself at Universal/Professional pension fund.
There were no expenditures for benefits in kind under the ‘Survivors’ function.
‘Family/Children’ function
The ‘Family/Children’ function includes cash benefits in the event of childbirth, leave for bringing up a child, family and child allowances, birth grants. Benefits in kind relate to allowances for pupils at first grade of primary school, expenditure on crèches and social allowances in kind provided by the employers.
In 2013, the expenditures on benefits under the ‘Family/Children’ function were 10.5% of total social protection expenditures. The total amount of social protection benefits paid under the function was BGN 1,464.8 million and compared to previous year increased by 6.6%. The ‘Family/Children’ function was characterized by a higher percentage of benefits provided based on a certain criteria for eligibility. In 2013, BGN 414.4 Million or 28.3% of social protection expenditures paid under the function were allocated for means-tested cash benefits. Benefits granted without fulfilling any special conditions included benefits for pregnancy and childbirth, paid parental leave, allowances for bringing up handicapped child and birth grants. BGN 528.5 million was paid for this kind of benefits.
Benefits in kind paid under the function ‘Family/Children’ in 2013 amounted to BGN 521.9 million or 35.6% of total social protection expenditures paid under the function. Compared to the previous year the amount of benefits in kind increased by 8.9%.
‘Unemployment’ function
The ESSPROS Manual defines benefits under the ‘Unemployment’ function that: ‘replace in whole or in part income lost by a worker due to the loss of gainful employment; provide a subsistence (or better) income to persons entering or re-entering the labor market; compensate for the loss of earnings due to partial unemployment; contribute to the cost of training or re-training people looking for employment; help unemployed persons meet the cost of travelling or relocating to obtain employment; provide help and relief by providing appropriate goods and services’.
In 2013, BGN 442.7 million was paid under the function ‘Unemployment’ or 3.1% of total social protection expenditure. Compared to the previous year, the social protection expenditures under this function decreased by 5.4%.
The share of lump-sum cash benefits of the cash benefits provided under this function decreased from 13.8% in 2012 to 12.5% in 2013, or by 1.3 percentage points.
Benefits in kind refer to the active measures at the labor market and include expenditure on engagement of unemployed persons at place different from their usual residence, expenditure on education and services connected to demanding and offering employment. The share of benefits in kind decreased from 9.4% in 2012 to 9.2% in 2013 or by 0.2 percentage points.
Housing’ function
‘Housing’ function is based on mediation of public authorities and aims to help households in meeting the cost of housing. An essential criterion for defining the scope of the ‘Housing’ function is the existence of qualifying means-test for the benefit.
In Bulgaria such benefits are provided in kind. Data is presented on rent benefit provided to single parents, elderly persons over 70 years of age who live alone, as well as to orphans who have completed social educational institutions. The protected dwellings provided to poor families are also included into this function. In 2013, BGN 9.5 million was paid for benefits in kind. Compared to the previous year their amount increased by 6.2%.
‘Social exclusion not elsewhere classified’ function
While the above mentioned functions refer to people subject to clearly identifiable risks or needs (the elderly, the disabled, the unemployed, etc.), the present function refers to the ‘socially excluded’ or ‘those at risk for of social exclusion’. The concept of social exclusion is multidimensional: it first refers to an insufficient level of income (poverty), but also to precarious situations in the field of health, education and employment.
In 2013, BGN 209.3 million was paid under the function or 5.8% more than for the previous year. BGN 111.5 million was allocated for cash benefits or 53.3% of total social protection benefits paid under the function. Compared to the previous year, the funds allocated to cash benefits increased by 1.1% and their share of total social protection expenditures decreased by 2.5 percentage points.
The total amount of paid benefits in kind in 2013 was BGN 97.8 million and it increased by 11.8% compared to the previous year. Their share of total expenditures under the function was 46.7% or 2.5 percentage points more than in 2012.
Прочети цялата новина http://www.klassa.bg/News/Read/article/258133_BGN+7%2C690.8+mn+allocated+from+Bulgaria+state+budget+to+finance+social+protection
Публикувана на 09/26/15 09:41 http://www.klassa.bg/News/Read/article/258133_BGN+7%2C690.8+mn+allocated+from+Bulgaria+state+budget+to+finance+social+protection
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