The General Secretariat of Social Security raises to the Toledo Pact Commission the need to avoid the application of quotations reductions so as not to affect the sustainability of the accounts of the system, after admitting that it maintains a debt with the State of about 17,000 million of euros since the 90s that should be regularized.
This is stated in the ‘Report on the development of the Toledo Pact 2011-2015’ that Social Security has sent to Congress and includes an analysis of the twenty recommendations that the body approved in 1995 and its degree of compliance.
According to the text, which has been accessed by Europa Press, the Social Security system suffers from a “pressing” funding problem due to the fall in employment and the increase in benefits, especially as a result of the economic crisis, so that The Secretary of State considers that “at this moment, more than ever, zeal should be maximized to ensure that all possible income is obtained” to cover spending commitments.
CONDITIONING THE MEASURES TO THE FINANCIAL BALANCE
“Therefore, the promotion measures (employment) that are established in any case should be a detriment to the coffers of Social Security or reduce the amount that is required for the periodic payment of system benefits,” continues the document , that advocates to “condition” the policies of bonuses and exonerations of contribution to the “maintenance of the financial balance of the public accounts”.
In addition, it warns that the quota reductions “put at risk the coverage of the financing of the benefits and generate negative effects on the budgetary balance of the system” for what is advocated to implement future measures for the promotion of employment through bonuses
“Otherwise, we would experience a significant reduction in revenues that would increase the deficit (of the system) and reduce the guarantee of coverage for contributory benefits,” the report adds. According to the Ministry of Finance, Social Security closed 2015 with a 1.26% deficit, double the 0.6% target agreed with Brussels.
SQUARE ACCOUNTS FOR 2016
Despite this, Social Security ensures that its 2016 budget is presented “formally balanced” between expenditures – which “keep their evolution to the bottom” – and revenues – in which social contributions represent an “ambitious tax collection challenge” “-.
Regarding the foreseeable future evolution of the accounts, the department headed by Tomás Burgos expects that in the short term, spending on pensions will maintain a growth of 2.8%, which will “reduce the deficit” by taking advantage of GDP growth. “In the very long term, if the unfavorable demographic impact is overcome, spending on GDP could fall,” he adds.
However, in this budgetary horizon, it must be taken into account that part of Recommendation No. 1 of the Toledo Pact has not yet been complied with, which in 1995 considered it “not possible to update” the patrimonial balance between the State and Social Security. to “definitively liquidate” the existing debt of 17.168 million euros “without causing irreparable damage to public accounts”.
A debt that derives from the loans that the State granted to the Social Security between 1992 and 1999 to pay cash offsets, general obligations and, above all, pending obligations of the Insalud that, as Expansión advances, were derived in part from insufficiencies of financing of Health when it was still charged to Social Security accounts.
In addition, the document states that loans were chosen instead of financing transfers “probably so as not to increase the State’s deficit, so that” or it would not be returned or this could only occur when the State provided the necessary transfers “.
Regarding the Special Regime of Self-Employed Workers (RETA) of the Social Security, the Secretary of State recalls that the voluntary system of choice of bases leads to the majority of self-employed workers opting for the minimum bases, which “causes financial imbalances. ”
For this reason, it is advocated to “adjust” the contribution bases from the beginning of their activity to the obtained yields and the adoption of an early or partial retirement system and/or a part-time work system under the scheme is discouraged. autonomous because it would affect the economic-financial viability of the system.
The Social Security also welcomes the reduction of seven to two months of the term of collection of debts in executive via between 2012 and 2015, and applauds that in the same period has been found an increase in resolutions of temporary disability (IT) positive after 365 days, which means that workers who reach that low point “have truly broken their health”.