The contributions that will have to be made to Social Security rise to 38,904 million euros and the credit skyrockets above 10,000 million
The historic rise in pensions of 8.5% will significantly increase the transfers that the State will have to make to the system in order to pay the payroll of the more than nine million pensioners. Thus, Social Security will receive in 2023 a total of 38,904 million euros in contributions from the State, 7.2% more than in 2022, according to the draft Law on General State Budgets (PGE) for 2023 delivered this Thursday in Congress by the Minister of Finance, María Jesús Montero.
The Social Security accounts, which have been in the red for years, are further stressed by having to face an extra of almost 20,000 million euros, which leads it to shoot up its spending on social benefits by 11.4%, which scales thus up to 190,687 million euros. For this reason, to balance this imbalance between income and expenses, the Government has also been forced to almost double the credit it makes to the system: 10,004 million euros next year, 43.3% more than the 6,982 million that it he lent in 2022. “They are 10,004 million for the tranquility and certainty of the system. We deal with the present and the future”, Montero stressed at a press conference.
With the 2023 Budgets, the Government renounces meeting two of the objectives that it had proposed at the beginning of its legislature: not to increase loans, which will once again raise the debt and thus exceed 100,000 million euros, and, in turn, , not leave the accounts balanced, since the commitment that Minister José Luis Escrivá had set was to end the deficit that Social Security has dragged on for many years by freeing it from its improper expenses. It is true that it has been reduced in these two years and the forecast is that in 2023, also coinciding with the end of the current Executive’s mandate, it will remain at 0.5% with which it will close this year.
This is a direct consequence of the fact that these Budgets represent a further step in the recommendation made by the Toledo Pact to move towards financial sustainability in the medium and long term by separating the sources of financing. Thus, direct transfers gain weight and will increase next year to almost 20,000 million euros, almost 1,500 million more than a year ago.
This means that the PGE are responsible for improper expenses of the system (specifically for an amount of 19,888 million) that were previously paid through contributions, such as the contributory benefit for birth and childcare, reductions and subsidies in the contribution, the integration of contribution gaps, the maternity pension supplement, the cost derived from early retirement, pensions in favor of family members, as well as some other supplements or concepts.
It is already very close to the State assuming all the improper expenses of the system, which a report prepared from the department of Escrivá quantified at 22,871 million euros.
#State #doubles #loan #pay #pensions