In keeping with its duties, the Public Finance Council (CFP) regularly monitors the general government budget outturn and that of its various subsectors. In this context the performance of the Social Security System and the Civil Servants Pension Agency (CGA) are of particular importance. As well as falling within the scope of general government, these institutions undertake around 40% of public spending, using a significant portion of the State’s resources to fulfil their mission.
This report marks the beginning of regular analysis of the Social Security and CGA budget outturn in the public accounts, on a half yearly basis, taking as a starting point the budget outturn of 2013. Given that the organisation of the social protection systems is relatively complex, Notebook no. 2/2014 is published along with this report and gives a description of the social protection managed by the Social Security and CGA Systems.
The budget aggregates of the systems under review are not adjusted for the effect of temporary measures. Nonetheless, throughout the analysis and whenever relevant, these measures are identified and an attempt is made to examine the behaviour of revenue or effective spending net of those effects. The revenue and expenditure aggregates were adjusted for the impact of the European Social Fund (ESF) transfers, as occurs in the national accounts, thereby neutralising the effect of these transfers on the Social Security System balance. Our analysis of the first half of the year takes as its starting point the first amendment to the 2014 State Budget.