Spanish Social Security system posts surplus of 7.78 billion euros in May

According to the performance data reflected in the accounting information system of the Social Security, the Social Security accounts posted a positive balance of 7.78 billion euros to 31 May 2013. This compares with 7.91 billion euros in the same period of the previous year.

This surplus of 7.78 billion euros corresponds to the difference between recognised revenue from non-financial transactions of 52.97 billion euros (up 2.01%) and recognised expenses of 45.2 billion euros (up 2.66% on the same period in the previous year). Expenditure not yet charged to the budget at this time would amount to approximately 900 million euros.

 

Revenue in May 2013 includes 8.57 billion euros of transfers received from the State, which is 2.8 billion euros higher than the amount received under this heading in the same period of the previous year. Contributions from the State represent 16.17% 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.

The State Secretary for the Social Security System, Tomás Burgos, believes that this positive monthly balance should not detract attention from the financial condition of the Social Security accounts. "This is obviously a good result but it should be remembered that it is heavily influenced by the resources provided by the State and that means they will gradually decline over the course of the year as we have already received 55% of the scheduled transfers". Along the same lines, he said that "National Insurance contributions from workers and employers are the true driving force behind the system".

In cash accounting terms, these non-financial transactions led to net revenue of 50.93 billion euros (up 3.5% on the previous year) due to the effect of the State transfers, as stated in the recognised revenue, while expenses rose by 2.73% to 45.08 billion euros.

Of the total volume of recognised revenue, 92.52% corresponds to the administrative entities and common services of the Social Security while the remaining 7.48% corresponds to the Mutual Insurance Companies for Accidents in the Workplace and Occupational Diseases. 94.5% of the expenses were recognised by the administrative entities and the remaining 5.5% by the mutual insurance companies.