Financing social protection for the future of work: Fiscal aspects and policy options

Report prepared for the G20 Framework Working Group (June 2018)

In March 2018, on the occasion of its first meeting under the Argentinian Presidency, the G20 Finance Ministers and Central Bank Governors stressed the necessity of policy responses, including international cooperation, to harness opportunities and ensure that benefits are shared by all. It consequently entrusted its Framework Working Group (FWG) to develop a menu of policy options, in various policy areas, relevant to the Finance Track aimed at responding to the impacts of technological change. These potential policy areas include tax and transfer, public expenditure, competition and data. Subsequently, the Co-Chairs of the G20 FWG provided an update on their discussion to advance the priority and thematic issues under the G20 Framework for Strong, Sustainable, Balanced and Inclusive Growth.

Given the ILO’s central role and extensive work in the area of social protection, the FWG invited the ILO to contribute a background report. This report presents an overview of the critical fiscal aspects of social protection, as to providing G20 countries, both AEs and EMEs, with a menu of policy options to explore sustainable financing options for extending social protection.