Social security records €49.5M surplus in August

  • Lusa
  • 28 September 2021

According to DGO's summary of budget execution, Social Security recorded a surplus of €49.5 million in August, compared to a deficit of €85.9 million in the same period last year.

Social Security recorded a surplus of €49.5 million in August, compared to a deficit of €85.9 million in the same period last year, according to the summary of budget execution released today by the DGO.

“The overall balance of the Social Security subsector reached in August a balance of €49.5 million, which represents a positive variation of €135.4 million compared to the same period last year,” the Ministry of Labour, Solidarity and Social Security said in a statement on the summary of the Directorate General of the Budget (DGO).

The effective revenue of Social Security increased 7.2% in August compared to the same period the previous year to €1.396.7 billion.

“This increase is essentially due to the increase of €1.077.5 billion in contributions (representing an increase of 9.2%), and the increase of €109.2 million in funding from the State Budget,” explains the office of the minister Ana Mendes Godinho.

For its part, expenditure rose in August by 6.5% compared to the same period of the previous year, to €20.780.7 billion, which “is largely due to the extraordinary measures adopted to address the socio-economic effects of the pandemic, which represent an increase in expenditure of €1.660.1 billion,” the ministry said.

In addition to expenses related to Covid-19, the ministry says that the increase in Social Security spending is also due to increased spending on unemployment benefits, “amounting to €170 million, 17.6% more than in the same period last year.

Also, the increase in expenditure on pensions and supplements by €318.2 million (up 2.8% on August 2020) and €167.3 million (up 22.8%) with subsidies and current transfers for professional training and social action contributed to the evolution of the balance.