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Social Security recorded a surplus of 2.141 million euros (ME) in the first half of the year on a cash basis. Excluding the European Social Fund (ESF) and the Fund for European Aid to the Most Deprived (FEAD) effects, the surplus was 2082 M€, a 317 M€ increase in comparison to the similar last year period.

 

Excluding those transfers, the effective revenue grew 6,9%, above the 5.2% underlying the Social Security budget (SSB), while expenditure increased 5.1% in the first quarter of 2019, below the 7.1% forecasted in the SSB. In the first half of the year expenditure on pensions amounted to 7631 M€, an increase of 5.2% (+377 M€) in homologous terms.

 

The average number of pensions (old age, survival and disability) reached 2 921 651 at the end of June 2019, less 4003 than in the same previous year period. This decrease is explained by the decline in the average number of survivors' pensions, as the average number of disability and old age pensions increased.

For its part, the Civil Servants Pension Scheme (CGA) reached a surplus of 173 M€ in the first half of 2019, contrasting from a deficit of 60 M€ predicted in the State Budget for 2019 (OE/2019). Compared to the same period of the previous year, an improvement of 95 M€ was recorded, benefiting from an accounting change in 2019 regarding pensions withholding tax paid by CGA. In comparable terms, CGA budget surplus decreased by 24 M€.

 

The growth of CGA's effective revenue in the first half of the year (0.7%) is higher than the expected for the whole year (0.2%). Transfers from the State Budget were more pronounced than implied in the OE/2019 and contributions to the CGA show a less intense reduction. The effective expenditure homologous change (-1.6%) was influenced by the previously mentioned accounting change. In comparable terms, CGA effective expenditure increased 1.3% by June, below the increase of 1.9% forecasted for the whole year.

 

The number of retirees, excluding survival pensioners, reached 478 336 at the end of June 2019, less 1422 than at the end of June 2018. This reduction was mainly due to the decline in the number of old age pensions and, to a lesser extent, of disability pensions.

 

The negative difference between the number of subscribers and number of pensioners continues to worsen. At the end of June 2019, this difference amounted to 40 569, corresponding to a worsening counterpart of 9695. This deepening inevitably contributes to the imbalance of the system, implying an increase in transfers from the State Budget.

General Government Sectors . Report nº 8/2018 . 05 September 2019