Printer Friendly

Spain : Social Security records a positive balance of 3,686.84 million euros.

This balance, as of March 31, 2019, represents 0.29% of GDP, and is the result of the difference between rights recognized by non-financial operations of 38,129.74 million euros, which show an increase of 11.72% and recognized obligations of 34,442.90 million euros (includes the allocation of 1,324.36 million euros for November and December 2018).

Of the total volume of recognized rights, 91.89% corresponds to the management entities and common services of the Social Security and the remaining 8.11% to the Mutual Societies collaborating with the Social Security. Regarding the obligations, 92.42% has been recognized by the managing entities and 7.58% by the collaborating mutual funds.

Homogeneous comparison

To establish a homogeneous comparison with the previous year, it should be taken into account that up to March 2019, 1,324.36 million euros of accrued expenses have been charged in the months of November and December 2018 - corresponding to the delegated payment of temporary disability and the contribution by the mutual partners to the maintenance of the common services - and that, consequently, must be reduced from 2019. All this means that the amount of expenses for the first quarter of 2019 would be 33,118.54 million euros (34,442 , 90-1,324.36).

Likewise, in March 2018, the additional revaluation of pensions had not been applied, which implies, in terms of homogeneity, that the accumulated expenditure in the first three months of last year must be increased by 350.55 million more. It should be remembered that at the beginning of last year, the revaluation of pensions was 0.25%. It was in July, with the new General Budgets of the State, when pensions increased up to 1.6% in general and to 3% in the case of minimums. This difference, which reaches 350.55 million euros, added

to the expense computed in the same period of 2018, puts the total at 31,353.65 million euros (31,003.09 + 350.55). This translates into a 5.63% increase in spending in the first three months of 2019 compared to the same period of 2018.

Recapitulating, in homogeneous terms, the accumulated positive balance in the first three months of this year amounts to 5,011.20 million euros, which is the difference between net recognized rights for non-financial operations of 38,129.74 million euros and some obligations recognized of 33,118.54 million euros.

Non-financial income

The social contributions amounted to 30,566.32 million euros, 8.09 percentage points more than in the same period of the previous year, caused by the increase in the quotation of employed persons by 8.10%, while the quotation of unemployed registered an increase of 8.00%. As a whole, Social Security plans to enter this year a total of 114,915.75 million euros in social contributions. Thus, the contribution revenues represent, at the end of March, 26.60% of the total for 2019.

The current transfers totaled 7,218.81 million euros, with an increase of 31.81% over the amount at the same date of the year 2018. An increase mainly motivated by the change in the calendar of transfers from the State to Social Security in concept of complements to minimums. This increase is of 53.12%, since the month of March includes the bookings that, for such concept, correspond to the months of April, May and June. Also, the third month of the year includes the contribution of the State to support the budget balance for the amount of 666 million euros.

The equity income registered 10.73 million euros, with an interannual decrease of 68.86%, and the rates and other income reflect the amount of 331.09 million euros, with a year-on-year decrease of 0.59%.

Non-financial expenses

The economic benefits to families and institutions totaled 32,552.27 million euros, 10.10% more than in the same year last year. This figure represents 94.51% of the total expenditure made in the Social Security system. The largest item, 29,934.16 million euros, corresponds to pensions and contributory benefits, which registered a year-on-year growth of 10.68%. However, the foregoing should be taken into account in relation to the expenses of the month of March 2019 to make a comparison with 2018 in terms of homogeneity.

In a detailed analysis of the contributory area, pensions (disability, retirement, widowhood, orphans and in favor of family members) amount to 27,267.72 million euros, a figure higher by 7.06% the previous year. Regarding maternity, paternity and risk during pregnancy benefits, they rose to 597.64 million euros, representing an interannual increase of 5.02%. In temporary disability, the expense incurred reaches an amount of 1,976.17 million euros, 117.17% more than in the same period of the year 2018, growth affected, as previously indicated, by the imputation in the months of January, February and March 2019 of the delegated payment of the temporary disability for the month of November and December of 2018, amounting to 978.58 million euros,

Likewise, the year-on-year growth of the expenses of mutual collaborators with Social Security in terms of contribution to the maintenance of common services and mandatory and facultative reinsurance due to the fact that, being expenses associated with collection, has determined that the corresponding to November and December 2018 had to be allocated to the 2019 budget as a result of the current budgetary imputation criteria. According to these criteria, the year-on-year increase in these expenses amounted to 375%, although in terms of a homogeneous comparison the increase would have been 13.28%.

As of March 31, non-contributory pensions and benefits, including minimum supplements to contributory pensions, amount to 2,618.11 million euros, an increase of 3.88% over the previous year. Of this amount, it is destined to non-contributory pensions and minimum 2,075.68 million and subsidies and other benefits 542.43 million euros, of which 524.93 million euros correspond to family benefits, 3.24% higher than that of previous year.

[c] 2019 Al Bawaba ( Provided by SyndiGate Media Inc. ( ).
COPYRIGHT 2019 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Date:May 2, 2019
Previous Article:Russian Federation : The strategy of salmon fishing season 2019 will be adopted at the Far Eastern Scientific and Fishery Council on May 15-17.
Next Article:Spain : The state deficit until March stands at 0.54% of GDP, compared to 0.96% of GDP registered the previous month.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters