Social security surplus down 84% in June YoY to €352M
According to the Directorate General of the Budget (DGO), the overall balance of the Social Security sub-sector fell from 2.141.5 billion euros in June 2019 to 352.2 million euros in June.
The Social Security surplus dropped 84% in June compared to the same month last year, to 352.2 million euros, reveals the Summary of Budget Execution.
According to the summary released by the Directorate General of the Budget (DGO), the overall balance of the Social Security sub-sector fell from 2.141.5 billion euros in June 2019 to 352.2 million euros in June this year.
In a statement, the office of the Minister of Labour, Solidarity and Social Security, Ana Mendes Godinho, stressed that the balance “represents a fall in revenue and an increase in expenditure in comparison with the same period of the previous year, as a result of the measures adopted in the context of the current pandemic situation in Portugal”.
Social Security recorded a reduction in effective revenue of 217.7 million euros (down 1.5% on the same period in the previous year) and an increase in effective expenditure of 1.571.6 billion euros (up 13.1% on the same period in the previous year), highlights the Minister’s Office.
“The effective revenue amounted to 13.955.3 billion euros and the effective expenditure reached 13.603.1 billion euros,” continues the Ministry.
According to the ministry, the fall in revenue is due mainly to the 2.3% reduction in contributions and dues (minus 195.6 million euros) and to the 68.7 million euros decrease in current transfers from the Central Administration.
The increase in expenditure “essentially resulted from the combined effects of extraordinary measures within the scope of Covid-19 (which represent an increase in expenditure of 875.8 million euros)”, the increase in expenditure on pensions and unemployment benefits, among other benefits.
According to the DGO, expenditure on unemployment benefits increased by 18.7% to 723.8 million euros compared to the same period last year.
Expenditure on sickness benefits and supplements rose by 13% year-on-year to 641.9 million euros.
The Ministry of Ana Mendes Godinho also highlights the 3.2% increase in expenditure on family allowance benefit (12.4 million euros more) compared to June last year.
