Social budgeting in Russia: from paternalistic to insurance paradigm

Social protection is the key element in organization of population life. Social budget serves as the instrument of its funding. At present there are different models of the organization of social budget. Basing on their capabilities, countries redistribute through social budget from 10 to 30% of their GDP. Social budgeting models depend on many factors that should be taken into account together with the practices of developed countries and the national experience. Today social budgeting is faced with new challenges - new situation on the labour market and population ageing. Many countries have begun to reduce social protection expenditure giving priority to development of individual forms of mutual assistance. Other countries are raising the role of individual efforts in the sphere of social insurance. In Russia the time is ripe to transform the existing system of social security in the sphere of pension and health insurance, to form a new model of distributing financial burden between the main subjects of legal relations.