Budget performance in August
Spanish Social Security system posts surplus of 3.38 billion euros
News - 2013.9.24
This surplus of 3.38 billion euros corresponds to the difference between recognised revenue from non-financial transactions of 85.45 billion euros (up 4.62%) and recognised expenses of 82.07 billion euros (up 3.94% on the same period last year). Expenditure not yet charged to the budget at this time would amount to approximately 764 million euros.
Growth in revenue in August 2013 can be mainly explained by the earlier receipt of transfers from the State amounting to 13.97 billion euros - 89.9% of the budgeted total earmarked for financing expenditure that will take place over the course of the year. These transfers are 6.41 billion euros higher than those received under the same heading in the corresponding period last year. Contributions from the State represent 16.35% of total revenue.
It should be noted that the 2013 Budget earmarked 6.67 billion euros more than the previous year by way of State contributions to the Social Security system; a total of 15.54 billion euros.
In cash accounting terms, these non-financial transactions led to net revenue of 80.99 billion euros (up 4% on the previous year) due to the effect of the State transfers, as stated in the recognised revenue, while expenses rose by 3.91% to 81.9 billion euros.
Of the total volume of recognised revenue, 92.58% corresponds to the administrative entities and common services of the Social Security while the remaining 7.42% corresponds to the Mutual Insurance Companies for Accidents in the Workplace and Occupational Diseases. 93.92% of the expenses were recognised by the administrative entities and the remaining 6.08% by the mutual insurance companies.
Non-financial revenue
National Insurance contributions amounted to 66 billion euros, which represents a fall of 3.15 percentage points on the same period last year due to a 1.84% drop in contributions from the employed and a 14.21% drop in contributions from the unemployed.
Overall, the Social Security system expected to receive a total of 105.86 billion euros this year by way of National Insurance contributions. Hence, the revenue from contributions accounts for 62.34% of the forecast total for 2013.
Current transfers amounted to 15.83 billion euros (up 65.36% on the accumulated figure to August 2012), fundamentally due to both the increase in transfers received from the State and the earlier payment thereof, as stated previously.
Revenue from assets amounted to 2.08 billion euros, a decrease of 15.85% on the same period last year. Taxes and other revenue amounted to 994.31 million euros, a year-on-year increase of 5.01%.
Non-financial expenditure
Economic benefits paid out to families and institutions amounted to 76.57 billion euros, a figure that represents 93.31% of total expenditure incurred by the Social Security system. The largest item in the budget (73.74 billion euros) corresponds to contributory pensions and benefits (up 3.99% on last year).
Within the category of contributory benefits, pensions (disability, retirement, widowhood, orphanhood, and those paid out to relatives) accounted for 69.48 billion euros (up 4.92% on last year). Benefits for maternity, paternity, and pregnancy risk amounted to 1.4 billion euros (down 6.65% year-on-year), while Temporary Incapacity Benefits amounted to 2.55 billion euros. This is a reduction of 10.78% on last year which thus continues the downward trend in this benefit.
As at 31 August, non-contributory pensions and benefits posted a year-on-year increase of 15.41% to a total of 2.83 billion euros, with 1.75 billion euros allocated to non-contributory pensions and 1.09 billion euros to subsidies and other benefits, of which 1.03 billion euros were allocated to family benefits.
As regards the management expenses incurred by the Social Security system, there was a notable overall reduction of 3.51% when compared with last year.
