Sustainable financing is key to the performance of a social protection system. While social protection is generally understood to be affordable for all countries at various stages of development and often costs relatively less than other government expenditures, it does constitute a significant monetary investment towards a country’s future. To finance social protection, sufficient and sustainable resources must be efficiently raised without detrimental effects to a country’s economy, administered professionally and distributed amongst various government and private agencies in way that guarantees high levels of accountability and transparency.

Financial policy and the budgetary process are key government processes in the determination of a country’s spending priorities and therefore stakeholders that aim to improve social protection require an understanding of the various processes through which revenue mobilization and expenditure decisions are made and what channels exist to influence them.

The purpose of the module on “Financing” is to provide a concise and easily understood introduction to critical aspects of social protection financing and financial management with a focus on “noncontributory” social protection schemes. The module covers a number of important issues, ranging from question of affordability, through establishing determinants of fiscal space, revenue mobilization, measuring costs of social protection in the context of public finance and the national budget process, public expenditure monitoring and evaluation and issues of financial management administration.


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