Self-learning kit on Social Budgeting
Home Social Budgeting | Self-learning kit | Module 1: Introduction | Module 2: Model frame | Module 3: Budgeting and Projecting
The purpose of this course is to provide organizations/individuals involved in the design and planning of a national social policy with a comprehensive and detailed model to describe and forecast expenditures and revenue of social protection schemes.
Social budgeting consists of two basic components. The first component is the statistical basis, i.e. the methodologically consistent compilation of the revenues and expenditures of a country's social protection system which is the Social Accounting System (SAS). The second component is the forecast of income and expenditure (budget projection) for normally a medium-term period and/or simulations of social expenditure and revenues under alternative economic, demographic and/or legislative assumptions and is known as the Social Budget.
The objective of this course is to introduce participants to the main components of the social budgeting process, that is:
- the demographic and economic frame of social budgeting
- the methodologically consistent compilation of (1) the revenues and expenditures of a country¿s social protection system over a certain period of the past, which is called the Social Accounting System (SAS); and (2) the ¿physical¿, other ¿monetary¿ and legal entities determining the development of the financial flows
- forecasting social protection income and expenditure (budget projection) for a medium-term period and/or simulations of social expenditure and revenues under alternative economic, demographic and/or legislative assumptions. This component is called the Social Budget.
Social Budgeting, ILO, ISSA, W. Scholz, M. Cichon, K. Hagemejer, 2000
This course is designed for everybody who is involved in national social policy and who wants to learn more about social budgeting.
The course is divided into three modules:
Module 1: Introduction to the economic and demographic frame of social budgeting
Module 2: Designing an economic and demographic model frame of social budgeting. The social budget and its database
Module 3: Budgeting and projecting revenue and expenditure of social protection schemes and systems
- A basic knowledge on percentage calculation
- Capacity to read in English
Module 1: Introduction to the economic and demographic frame of social budgeting
In this part we deal mainly with methods used to set up the statistical basis of social budgeting models, i.e. the ¿monetary¿ and ¿physical¿ entities observed in the past. In order to do so, you will familiarize yourself with some major national accounting systematic. This is required to make you understand that the accounts of social protection systems are part of a broader set of accounts which are all based on core concepts, rooting back to fundaments established by economic theory.
In this part we discuss the social budget¿s economic environment by modelling the economic and labour market frames. Different subjects will be treated: wage concepts, wage developments, price indices, inflation, etc.
Module 3: Budgeting and projecting revenue and expenditure of social protection schemes and systems
In this part we will discuss some basic techniques to simulate and project income and expenditure of social protection schemes within the major social protection functions, such as pensions, health care, unemployment benefits, social assistance and so on. These techniques can then be used to model the main expenditure and income categories of different national institutions in concrete country cases.