Kela finance tree: A visual representation of social security expenditures

The new Kela finance-tree tool helps to visualise the distribution of social security expenditures and offers a way to analyse the expenditure data according to benefit categories, municipalities and regions.

Kela has released an interactive tool visualising the expenditures under the social security schemes administered by Kela and showing how they are distributed among individual municipalities and regions. The tool helps users get an idea of the relative size and overall scope of different categories of expenditures.

According to Timo Hujanen, a researcher with Kela who compiled the underlying data, the finance-tree tool can be used to compare the economic impact of benefits in different regions of Finland, while also helping users to see how potential changes in the benefit schemes would affect particular regions.

For example, raising the benefits available to families with children would benefit especially the Uusimaa and Pohjanmaa regions, while higher pensions would be of advantage in Eastern and Northern Finland, Hujanen says.

The Kela finance tree can be used for example as a preparatory tool in any attempted comprehensive reform of the social security system. It can be useful to such groups as politicians, government officials, experts in municipal policy and journalists, and can also be used in educational institutions.

Based on unique register data collected by Kela

The finance-tree tool is based on a unique set of register data collected by Kela for the year 2018.

According to Hennamari Mikkola, who heads Kela’s research unit, Kela stands out as a producer of information about social security in Finland. The Kela finance tree is designed to make that information available in an accessible format.

The tool is available in Finnish, Swedish and English. 

More than two thirds of Kela’s benefit expenditures go to recipients in cities and towns

The finance tree reveals among other things that more than two thirds of Kela’s benefit expenditures go to recipients who live in a city or other urban locality.

Kela’s total benefit expenditure in 2018 came to a little under EUR 15 billion. A total of EUR 10.4 billion was paid to residents of urban localities. The rest was paid to residents of relatively densely populated municipalities (EUR 2 billion) and to residents of rural municipalities (EUR 1.8 billion).

Total social security expenditure in Finland for 2018 came to about EUR 70 billion. Kela’s share of the total was about one fifth.

 

Try out the Kela finance-tree tool Kela finance-tree

Also available is a tool showing financial flows in the Finnish social security system