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Social Protection System Review of Kyrgyzstan

image of Social Protection System Review of Kyrgyzstan

Social protection is at the heart of Kyrgyzstan’s development and is a priority of public policy. Pension coverage among today’s elderly is universal and a large number of contributory and non-contributory programmes are in place to cover a wide range of risks. Kyrgyzstan has succeeded in maintaining the entitlements dating from the Soviet era while introducing programmes appropriate for its transition to a market economy. However, severe fiscal constraints have limited the coverage of these new arrangements and their capacity to adapt to challenges such as poverty, pervasive informality and emigration.

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Financing social protection

OECD Development Centre

This chapter examines spending on social protection from a systemic and whole-of-government perspective. It locates social protection expenditure within the Government’s overall budget and examines spending trends across the different pillars of the social protection sector, as well as across individual programmes within this sector. It also analyses the composition of government revenues and the financing of social protection in particular, identifying the increasing subsidisation of the social insurance system by the Republican Budget as a major cause for concern. It concludes with a fiscal incidence analysis showing the overall system of taxes and transfers significantly reduces inequality but its impact on poverty is less clear.

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