Reference budget
Reference budgets represent the necessary monthly household expenses for different household types and serve as a guide, for example when advising on debt or when discussing social policy measures. For Austria, reference budgets have been developed by ASB Debt Counseling , the umbrella organization of the state-recognized debt counseling in Austria , and are updated annually. The items of expenditure contained in the reference budget are intended to show what is at least necessary for life if modest social participation is to be ensured. As a theoretical basis thereby serving realization chance concept of Martha C. Nussbaum .
Definition and purpose
Reference budgets are expenditure grids that are created for different household types. Based on the household composition, the disposable income and other characteristics (living situation, owning a car, etc.), a grid is created that corresponds to the respective household situation. With the help of this expenditure grid it can be shown which expenditure a household with a certain - often low - income has to reckon with or which income is at least necessary to secure the necessary expenditure.
The purpose of drawing up reference budgets is to calculate the real costs of a certain basic standard of living that corresponds to a person's physical, psychological and social needs and enables them to participate adequately in modern social life. So it is not a matter of calculating how much money is required for mere survival, and thus of an indispensable minimum standard. Rather, it is about assessing the actual needs of a household and drawing up a budget with which a decent life can be led and a certain degree of social participation is ensured.
This makes the reference budget an important instrument that can not only make a contribution to combating poverty and over-indebtedness , but also aims to avoid social exclusion and reduce social inequality.
From a practical point of view, the specific question arises as to what is needed for an adequate standard of living that also offers sufficient opportunities for participation. The model of the chances of realization presented by the Nobel laureate in economics, Amartya Sen and further developed by the philosopher Martha C. Nussbaum, is a helpful theoretical frame of reference .
application
A wide field can be defined for the application of reference budgets. Household budgets are used for budget and debt advice in several European countries . The website of the European Network on Reference Budgets provides an overview of the offers and areas of application in different countries (in English). The situation of specific private households can be compared with the data in the reference budget. Based on the differences that arise, sensible starting points for a balanced budget in the future can be determined. In order to determine possible reserves for repayments within the framework of debt regulation and their consequences, simulations of a possible change in expenditure can be made.
Reference budgets have the effect of preventing over-indebtedness above all if they are already used for creditworthiness checks , as is the case in the Netherlands, where the National Institute for Budget Information, NIBUD, also supplies key figures to the banking industry. The reference budget can be used to calculate the amount of a household's loan (key figure for the loan / income ratio) and thus also whether it can be assumed that a household is able to repay a loan. The reference budgets are also used with regard to purchasing power calculations, in poverty research and social planning. In the Netherlands, the reference budgets were used to develop a specific calculation of the poverty line.
Reference budgets are interesting for poverty research insofar as they define a minimum shopping basket for different household types. At present, poverty lines across Europe are mainly defined on the income side; According to the specifications of the European statistical office Eurostat , those who have to get by on an income that is less than 60% of the median income in their own country are at risk of poverty . Organizations such as the European poverty network EAPN have long criticized the inadequate consideration of necessary expenses.
Reference budget Austria
For Austria, the reference budget was developed by ASB Debt Counseling , the umbrella organization of the state-recognized debt counseling in Austria, as part of the two-year EU project “Standard Budgets”. The reference budgets are updated annually and used as “budget examples” in debt advice and budget advice. The reference budgets are also used again and again as a reference value when discussing (planned) social policy measures.
There are currently Austrian reference budgets for 7 household types:
- One person household
- Pair
- One-parent household with 1 child
- One-parent household with 2 children
- Couple with 1 child
- Couple with 2 children
- Couple with 3 children
The calculation of the individual expenditure categories of the reference budget is carried out using different methods.
Primary data
Where no data are available or the available data appear unsuitable, own surveys are carried out in shops, catalogs and on the Internet.
Secondary data
Here, data from organizations specializing in certain topics and specialist areas, such as B. Commerce Austria , Labor Austria , E-Control , primary and secondary schools , Traffic Club Austria , by scientists and by the Statistics Austria generated. Existing fixed tariffs such as television and radio fees and deductibles for free school trips are also used.
Focus groups / discussions
In addition, the results from focus group discussions with consumers are used as input for the reference budget. Your views and experiences will help achieve more realistic budgets.
Most of the categories used are based on what are known as basic shopping baskets ; H. detailed lists of goods (purchase price and service life) that are allocated to monthly costs. These goods are absolutely necessary for every household and are all new (no second-hand goods).
For the price determination, comparatively low but judged reasonable prices are used. The lowest possible prices are not included as not all goods and services are always available at that price. Furthermore, it must be assumed that it would be too time-consuming for consumers to determine the lowest prices in each individual category. Depending on the category, either the first quartile (25% above the lowest price) or an average value is used.
The Austrian reference budgets are updated annually using the consumer price index and comprehensively revised every five years.
Web links
Reference budgets Austria prepared as budget examples for different household types (updated annually): http://www.budgetberatung.at/budgetberatung/beispiele/
Website of the European Network on Reference Budgets (in English): http://www.referencebudgets.eu
Booklet “Reference budgets to strengthen social participation” (2010): https://www.schuldenberatung.at/downloads/infodatenbank/referenzbudgets/referenzbudgets-booklet2010.pdf
See also
Realization opportunity concept by Martha C. Nussbaum
Individual evidence
- ↑ cf. Reference budget booklet page 6ff. Retrieved November 8, 2018 .
- ↑ http://www.referencebudgets.eu. Retrieved September 6, 2018 .
- ↑ https://www.nibud.nl/consumenten/het-nibud/organisatie/nibud/. Retrieved September 6, 2018 .
- ↑ NIBUD: Handbook standard budgets, 2008, p. 36, see: https://www.financite.be/sites/default/files/references/files/149_0.pdf. Retrieved September 6, 2018 .
- ↑ http://www.armutskonferenz.at/files/moser_referenzbudgets_soziale_inklusion-2014_1.pdf. Retrieved September 6, 2018 .
- ↑ http://www.referencebudgets.eu/budgets/images/Conference2015/vrooman_nl_20150602-1.pdf. Retrieved September 6, 2018 .
- ↑ Arjan Soede, Cok Vrooman: Beyond the breadline. A poverty threshold based on a generalized budget approach . 2008.
- ↑ http://ec.europa.eu/eurostat/web/products-datasets/-/tesov016. Retrieved September 6, 2018 .
- ↑ http://www.referencebudgets.eu/budgets/index.php?option=com_content&task=view&id=42&Itemid=52. Retrieved September 6, 2018 .
- ↑ https://www.budgetberatung.at/budgetberatung/beispiele/. Retrieved September 6, 2018 .
- ↑ See e.g. B. Media report "Debt advice for raising the subsistence level" in https://www.sn.at/politik/innenpolitik/schuldenberatungen-fuer-anstieg-des-existenzminimums-30453160. Retrieved September 6, 2018 .
- ↑ https://www.schuldenberatung.at/downloads/infodatenbank/referenzbudgets/Referenzbudgets_2018_Aktualisierung_EndV.pdf. Retrieved September 6, 2018 .
- ↑ cf. Reference budget booklet p. 18ff. Retrieved November 8, 2018 .
- ↑ https://www.gis.at/gebuehren/. Retrieved September 6, 2018 .
- ↑ https://www.frauen-familien-jugend.bka.gv.at/familie/finanzielle-unterstuUNGEN/freifahrt-und-fahrtenbeihilfe/selbstbehalt-freifahrt.html. Retrieved September 6, 2018 .
- ↑ cf. Reference budget booklet p. 18ff. Retrieved November 8, 2018 .