ALEJANDRA OLCESE
@AlejandraOlcese
Updated Wednesday, January 26, 2022-01:27
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The
Central State Administration
will make
transfers to Social Security
in 2022 worth
36,343 million euros,
but even so, the
budget gap between income and expenses
at the end of the year will be around
6,170 million euros, 0.5% of GDP ,
as reported on Tuesday by the minister of the branch, José Luis Escrivá.
"
Transfers from the State
and other organizations finance 20.07% of the expenses of the Social Security system and their amount amounts to
36,342.11 million.
About half of this item is made up of transfers to comply with the recommendation of the Toledo 2020 pact amounting to
18,396.00 million euros
(32.07% higher than budgeted in 2021)", is included in the Economic and Financial Report that accompanies the Social Security Budgets in 2022.
This is a volume of transfers -which are made with a charge to tax collection-
16.25%
higher than that which occurred in 2021, of 31,163 million euros, and even
higher than that which was made in 2020,
the year of the pandemic, 35,793 million euros. Until the covid broke out, the normal levels of contribution by the State were much lower:
15,643 million in 2019
, which had been reached after years of increases (in 2005, for example, the State transferred 4,840 million).
The increase in transfers in 2022 will be necessary given the measures approved by Social Security, such as the
2.5% rise for public pensions
, and 3% for minimum and non-contributory pensions, approved this Tuesday in the Council of Ministers ;
as well as the payment of a compensatory 'paguilla' for the inflation of 2021 that on average will be around 250 euros.
Both measures will mean
inflating pension spending in
2022
by 6,500 million euros
, which will aggravate the system's budget gap.
At the end of 2021, the deficit is 1% of GDP, about 12,000 million euros, and it is expected that in 2022 it will drop to 0.5%.
The 36,000 million from the State will be used to finance
improper expenses
(18,396 million),
supplements to minimum pensions
(7,050 million), other
benefits
(4,471 million), finance
IMSERSO's social services
(3,061 million) or finance
non-contributory pensions
(2,772 million).
million), among other things.
The 18,000 for improper expenses will go to
childbirth and care
benefits (2,879.6 million euros),
reductions in contributions
(1,690 million),
subsidies
(996 million), integration of
contribution gaps
(468 million), supplements of contributory pensions (884), early retirement without a reduction coefficient (378), pensions in favor of relatives (387), cover the cost of involuntary early pension at ages prior to retirement (2,079), an amount equivalent to 1.5 points of contributions for other concepts of a non-contributory nature (5,085) and contributory benefit supplements subject to income limits (3,549).
With contributions there is not enough to pay contributory pensions
The transfers of the money collected by taxes are necessary to complement what the Social Security expects to enter through
social contributions
: a total of
136,344 million euros
, since this will not be enough to assume the
expected expenditure of 175,166 million euros
in current transfers .
In fact, with the income from contributions, it will not even pay for
contributory pensions
, which will cost
143,090 million.
For this reason, the Ministry of Social Security has to undertake the
second part of the pension reform
in 2022, which will focus on the modification of the self-employed regime, the unstopping of the maximum contribution bases and the modification of the calculation period for the pension.
These measures will be added to the Intergenerational Equity Mechanism, which will apply a rise in social contributions, to try to reduce the hole in the system.
At the end of 2021, the Social Security deficit stands at 1% -about 12,000 million euros-, despite the fact that the State has transferred 13,800 million to it and that the system's income has broken records.
The maintenance of employment that has been achieved in the country thanks to the
ERTE
and the evolution of wages has allowed
the system to collect 132,000 million for
social contributions in 2021, the equivalent of 11% of GDP and which is 10% more than in 2020 and
6% more than before the pandemic
.
Conforms to The Trust Project criteria
Know more
Social Security
GDP
Jose Luis Escriva
Coronavirus
inserted
pensions
covid 19
ERTE
economy
Basque CountryConfebask maintains that the reform agreed by Díaz guarantees the "prevalence" of the agreements of the Basque Country
Public spending Social Security had already spent 1,600 million on covid casualties in 2021 before omicron burst
EmploymentManpowerGroup expects the creation of one million jobs in Spain between 2022 and 2023, 90% in the service sector
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