II. Summary of Social Security Expenditure, FY 2006


1.
Social Security Expenditure in fiscal year 2006 was 89,109.8 billion yen.

( i ) Of the three categories, Medical care was estimated at 28,102.7 billion yen, accounting for 31.5 percent of the total; Pensions was 47,325.3 billion yen for a total share of 53.1 percent. Welfare & Others was 13,681.8billion yen for a total share of 15.4 percent.
( ii ) Social Security Expenditure increased by 1.5 percent in fiscal year 2006. The percentage share of the National Income was 23.87 percent.
( iii ) Social Security Expenditure per head of population was estimated at 697,400 yen, and the average expenditure per household was 1,850,800 yen.


Table 1 Social Security Expenditure by category, fiscal years 2005 and 2006
Table1 Social Security Expenditure by category, fiscal years 2005 and 2006
Note: ( ) The ratio to the total is expressed as a percentage.

Table 2 Social Security Expenditure by category as a percentage of National Income
Table2 Social Security Expenditure by category as a percentage of National Income

Table 3 Social Security Expenditure per head of population and per household, fiscal years 2005 and 2006
Table3 Social Security Expenditure per head of population and per household, fiscal years 2005 and 2006
Note: 
Social Security Expenditure per household = (Total number of people in households/Total number of households) × Social Security Expenditure per head of population.

Figure 1 Social Security Expenditure by category, fiscal years 1970-2006
Figure1 Social Security Expenditure by category, fiscal years 1970-2006

2.
As can be seen in Table 4 below showing Social Security Expenditure by functional category, “Old age” heads the list with 50.1% of the total, followed by “Sickness and health” at 30.8%. These two functional categories make up approximately 80.9% of the entire Social Security Expenditure. The other functional categories and their percentages of the total are “Survivors” (7.2%), “Family benefits” (3.4%), “Invalidity benefits” (2.9%), “Social assistance and others” (2.6%), “Unemployment” (1.4%), “Employment injury” (1.1%) and “Housing” (0.4%).

Table 4 Social Security Expenditure by functional category, fiscal years 2005 and 2006
Table4 Social Security Expenditure by functional category, fiscal years 2005 and 2006
Notes:
1.
( ) The ratio to the total is expressed as a percentage.
2.
Refer to ‘Reference’ for more details about functional classifications.
 
3.
Following the enforcement of the Services and Supports for Persons with Disabilities Act, it is necessary to keep in mind that the expenditures and their functional classifications have changed in fiscal year 2006. Some items were transferred from “Family benefits” or “Sickness and health” to “Invalidity benefits.” In addition, the extraordinary subsidy for the Services and Supports for Persons with Disabilities Act greatly increased the “Invalidity benefits” expenditure. Therefore, simple data comparisons of fiscal year 2006 and before should be avoided.

Table 5 Social Security Expenditure by functional category as a percentage of National Income
Table5 Social Security Expenditure by functional category as a percentage of National Income
Note: 
Following the enforcement of the Services and Supports for Persons with Disabilities Act, it is necessary to keep in mind that the expenditures and their functional classifications have changed in fiscal year 2006. Some items were transferred from “Family benefits” or “Sickness and health” to “Invalidity benefits.” In addition, the extraordinary subsidy for the Services and Supports for Persons with Disabilities Act greatly increased the “Invalidity benefits” expenditure. Therefore, simple data comparisons of fiscal year 2006 and before should be avoided.

Figure 2 Social Security Expenditure by functional category, fiscal years 2002-2006
Figure2 Social Security Expenditure by functional category, fiscal years 2002-2006
3.
Social Security Expenditure for the elderly (i.e., retirement pensions, medical care for the aged, welfare services for the aged) was 62,229.7 billion yen. Its share of Social Security Expenditure was 69.8 percent.

Table 6 Social Security Expenditure for the elderly, fiscal years 2005 and 2006
Table6 Social Security Expenditure for the elderly, fiscal years 2004 and 2005
Notes:
1.
( ) The ratio to the total Social Security Expenditure is expressed as a percentage.
2.
Health and medical services expenditure for the aged consists of expenditures concerning measures for care control, the welfare service expense not covered by long-term care insurance, etc.
 
3.
Elderly employment maintenance benefits provide those over 60 who, from the time of reaching 60 years of age, are to continue working with a pay cut of more than 25%, with the equivalent of 15% of their pay until they reach 65 years of age, with the aim of promoting the maintenance of employment and reemployment among people aged between 60 and 65.
 
4.
The applicable age group for the healthcare system for the elderly was in October 2002 raised by five years from the over-70s to the over 75s; thus it is necessary to bear in mind that the above figures for elderly healthcare (medical areas) benefits in 2005 and 2006 differ in terms of their applicable age range. That the rate of increase compared with the previous year is a negative figure is a reflection of this. According to the “2006 National Medical Care Expenditure (Estimates) (Ministry of Health, Labor and Welfare),” the national medical expenses for the over-75s in 2006 rose by 1.5% compared with the previous year.

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