The Court of Auditors urges motion to be taken in opposition to the 89 billion Social Security deficit | Economy | EUROtoday

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The Court of Accounts has requested the Cortes Generales -Congress and Senate- to urgently undertake measures to face and resolve the indebtedness of Social Security, whose destructive web price reached 88,759.4 million euros on the finish of 2022. This is acknowledged within the Declaration on the General Account of the State, made by the General Intervention (IGAE) for the fiscal 12 months of stated 12 months. In its report back to Parliament, the supervisory physique highlights that Social Security has had a deficit for six consecutive years.

Sources from the supervisory physique have confused the significance of the reserve fund or “pension piggy bank” being half, in accounting phrases, of the Social Security property. In idea, it’s legally foreseen that this would be the case beginning within the 12 months 2023. One of the causes of this debt derives from the loans that the State has been utilizing to finance Social Security. The sources consulted point out that the loans are in lots of instances extendable. In the case of 2022, State loans to Social Security amounted to virtually 7,000 million euros. When they mature, these loans are often prolonged once more.

The suggestions to be submitted to the Cortes will in all probability advise that sources be offered to Social Security via present transfers, and never by way of loans. In 2022, they have been already made, as much as a complete of 18,396 million euros. It also needs to be famous {that a} latest report by the Bank of Spain indicated that the overall liabilities of the General Treasury stood at 7.8% of GDP till final March. This is equal to reaching 116,000 million euros, which in flip is 10,000 greater than within the earlier 12 months.

The report of the Court of Accounts on the General State Account is repeated, in brief, as soon as once more since 2017. The calculation referring to 2022, launched this Friday, aggravates the state of affairs, as a result of the 88.7 million destructive web price (money owed are better than property), they characterize a document determine. In any case, the expansion of this imbalance occurred that 12 months at a slower tempo than in earlier years. This improve was decrease than in earlier years, however the reality is that it reached 7.7 billion euros. In any case, the supervisory physique considers that the info proceed to point a development that have to be stopped. Hence, its report addressed to the Cortes will urge the adoption of “the necessary legislative measures to resolve the financial situation of indebtedness of the Social Security System vis-à-vis the State.” The opinion of the Court of Auditors is that some initiatives have already been taken, however they continue to be inadequate.

The Court of Auditors' report on the overall State accounts for 2022 highlights that discrepancies persist between the monetary accounts of the General Treasury of Social Security and the General State Administration concerning the inadequate funding for well being care and social companies. The most essential, 3,3724 million euros, is barely mirrored by the Social Security Treasury. It is highlighted that “there has not been a financial clean-up due to the loans granted by the General State Administration to Social Security between 1992 and 1999 (17,168.6 million), nor have the debts of Social Security with the General Administration for the liquidation of the agreements signed with the Basque Country and Navarre (9,081.5 million) been amortized”.

There are different features of the General State Account on which the Court of Auditors will make suggestions to the Cortes. For instance, that measures be adopted to combine all entities of the state public sector into the General State Account, and that legislative reforms be promoted to shorten the deadlines for rendering accounts, in addition to limiting the deferral to future years of the budgetary allocation of revenue and obligations. Likewise, that the content material of the inventories be improved, that the knowledge contained within the report be expanded, and that every one processes for acquiring accounting data be digitalized. Also, that mechanisms be established to manage funds execution and the moratorium on money owed with Social Security of private and non-private well being establishments be resolved.

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