Thu. Mar 21st, 2019

The State will lend 15,164 million to the Social Security to be able to pay pensions

El Estado prestará 15.164 millones a la Seguridad Social para poder pagar las pensiones

The Budget of the Social Security for 2019 includes a loan from State by amount of 15,164 million euros to guarantee the balance of the system's accounts, as stated in the draft of the General State Budget Law (PGE) for this year.

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This loan is of the same amount as the credit registered in 2018. The Government estimates that the Social Security deficit will stand at 1.1% of GDP this year, will decrease in 2020 to 0.9% of GDP and will fall to 0.4% in 2021.

According to public accounts designed by the Government for 2019, Social Security will have a budget of 153,864 million euros this year, 6.2% more than in 2018.

Pension increase

This increase is due to the fact that the PGEs for 2019 include compensatory payments to pensioners for the price deviation in 2018 and the increase in contributory pensions by 1.6% in general terms and 3% in the case of minimums. and non-contributory.

These measures, together with the greater number of pensioners and the composition effect, raise the expenditure on pensions by 6.2% with respect to 2018, being the main item of social expenditure in quantitative terms.

More income

According to the draft Budgets, income from social contributions will reach 123,584 million euros this year, 7.5% more than in 2018.

This growth, explains the Executive, is due to the rise in the minimum wage by 22.3%, the increase in the maximum bases, the increase in the rate of contribution of self-employed workers to 30%, the increase in the minimum bases for this group in a 1.25%, and the changes introduced in the unemployment subsidy for over 52 years.

In total, the consolidated budget of non-financial income of the Social Security amounts to 2019 to 140,256 million euros, 7% more than in 2018. Of these, most come from social contributions.

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