Social budgeting

Social protection is a major item in total public spending. As such it faces constant political challenges. In the domain of globalized mainstream thinking, it has become equated with an obstacle to flexibility and a cost factor of production that limits income growth rather than enhances it. Whatever the economic, societal, cultural and political positioning of social protection in a country may be, a rational discussion about its scope and future direction, and its actual and potential stabilizing influence on general economic developments, is only possible if that discussion can be based on sound quantitative information about the past and possible future progress of social protection expenditure and revenue. Governments continuously face the need to adapt their social protection systems to ever changing economic, demographic and social environments. Social budgeting, (the process by which society’s goals and priorities are better reflected through the budgeting process) which comprises a clear social accounting and a meaningful projection system, is or better, should be one of the factual bases for national social policy.