On July 9, 2012, the “Financial Statistics of Social Security in Japan” were designated by notice from the Minister of Internal Affairs and Communications to be used as the fundamental statistics in the area of social security for the first time. Until the previous year, the “Cost of Social Security in Japan” was published mainly based on the ILO Standards, while from this year both Social Expenditure based on the OECD Standards and Social Benefit based on the ILO Standards will be published.
The “Financial Statistics of Social Security in Japan” were designated to be used as the fundamental statistics due to the Cabinet decision made on March 13, 2009, regarding the “Basic Plan concerning the development of official statistics” (hereafter called “Basic Plan”) in which the direction of public statistics was specified. The Basic Plan stated the necessity for developing statistics, which comprehensively show welfare and social security data. It also pointed out that a sufficient international comparison could not be made using only the previously utilizing Social Benefit statistics, and that there was a need for improving the consistency of the statistics based on various kinds of international standards.
Since the publication of the “Cost of Social Security in Japan FY1995” in 1997, the National Institute of Population and Social Security Research has published the statistics annually for 15 years. The Cost of Social Security in Japan has also started to include international comparisons based on the OECD Standards, in addition to the ILO Standards, as a reference material since the publication in 2004. This is because the update on Social Benefit, namely the statistics based on the ILO Standards, by other countries was lost and beginning to cause disruption to the international comparisons. Publishing the report this year in the form of enhanced aggregated data of Social Expenditure based on the OECD Standard will make it possible to utilize the data as an important indicator for conducting the comparison with other countries in the future. While Japan’s own aggregated costs such as “Social Security Expenditure for the Elderly” and aggregated data based on international standards were mixed until last year, it has been decided that, from this year, data included will mainly be based on international standards. Tables, which are not included in the published material, continue to be published on the homepage of the National Institute of Population and Social Security Research for use by any interested parties. We hope that the explanation on the relationship between the Financial Statistics of Social Security in Japan and the System of National Accounts indicated in the Basic Plan, newly added this year to the reference materials at the end of the report, will also be used in conjunction with the rest of the report.
As active debates on social security in Japan, which has become an aging society, has been conducted in recent years, the National Institute of Population and Social Security Research will make its best efforts in realizing the Financial Statistics of Social Security in Japan play the role as the fundamental statistics to fulfill expectations of the Japanese citizens.
November 2012
National Institute of Population and Social Security Research
Shuzo Nishimura, Ph.D. Director-General
