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Michael Fuchs & Katrin Gasior

Michael Fuchs & Katrin Gasior. Background: Regulatory Impact Assessment (RIA) in Austria. New federal budget law 2013 (BHG 2013) entered into force on 1 January 2013

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Michael Fuchs & Katrin Gasior

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  1. Michael Fuchs & KatrinGasior

  2. Background: Regulatory Impact Assessment (RIA) in Austria New federal budget law 2013 (BHG 2013) entered into force on 1 January 2013 • systematic impact assessments have to be part of every consultation material and the legal material provided to the Austrian parliament • Nine impact dimensions SORESI provides RIA in the field of social affairs Contractor and Coordinator: Austrian Federal Ministry for Employment, Social Affairs and Consumer Protection Project partners: ISER, KatholiekeUniversiteit Leuven, Making Choices, BRZ, Statistics Austria

  3. Online microsimulation model Evidence based policy Ex-ante evaluation tool Impact assessment free access user friendly Pilot project

  4. Chances of SORESI Political participation = “currency of citizenship”(Kulinski et.al. 2000: 791)  2 pre-conditions: • “must have ready access to factual information that facilitates the evaluation of public policy.” • „must use these facts to inform their preferences.“ • SORESI = • Information on current social benefits and tax regulations • Opportunity to try out reform scenarios yourself and to analyse their effects • Not only for civil servants but the ‚broader‘ public

  5. Limitations of SORESI • Simplification of reality  not all parameters can be simulated in detail (e.g. unemployment benefits) • Not all social benefit and tax regulations can be displayed on the input mask • Input-data: Sample size, coverage of different income elements in EU-SILC (e.g. assets and expenditure side) • “basic” knowledge of Austrian tax and benefit system and statistical results required • Macro validation  good results • …work in progress…

  6. SORESI - work flows Webinterface: Input parameter Webinterface: Output tables Workflows in thebackground 1 4 2 Euromod.exe Mikro data: Base vs. Reform 3 STATA Do-File 2013 results, based on: • 2011 employment status • incomes uprated to 2013 Policy rules EU-SILC Uprate 2013 2011 Income 2010 2010  2013

  7. Example: family allowance reform • New support model for families  decidedbythecouncil of ministers in June 2013 • Familyallowance NEW: better, simple, transparent • Childcareprovision: focus on children <3100 Mio./yearforthefederalstates Source: press release BMWFJ, 18 June 2013

  8. Family allowance NEW * if in full-time education** Income test: household income < 55,000 and 3rd child onwards

  9. SORESI – ResultsPoverty risk & Income situation

  10. SORESI – ResultsFiscal assessment

  11. Results of the reform • Impact on households: • Decrease of poverty risk for families with children rather low, • slight increase in equ. household net income • Reform of the family allowance would amount to additional annual costs of € 205 Mio. • 2 times as high as additional annualinvestment in childcareprovision (€ 100 Mio/year) • Already now clear emphasize on direct cash benefits

  12. Future developments • Nowcasting (& Forecasting) • Results for model households • annual update (next: beginning 2014) • improving simulation of certain benefits (e.g. unemployment benefits, minimum income benefits)  depending on dataavailability and quality in EU-SILC  collaborationwith Statistik Austria

  13. Thanks for your attention! Contact: fuchs@euro.centre.org gasior@euro.centre.org Test SORESI yourself:www.bmask.ac.at/soresi

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