Through its demographic and economic effects, the HIV/AIDS pandemic poses a huge challenge to the financial management of national social protection systems. For example, increased mortality owing to HIV/AIDS may reduce the number of contributors to pension schemes. And although the share of contributors reaching retirement age declines, the number of surviving dependents entitled to benefits increases. At the same time, the demand for health services increases. Using a simplified social budget model, this chapter tries to assess the potential financial effects of HIV/AIDS on national social protection schemes.
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