MADRID (Reuters) – The caretaker government announced Wednesday that it has once again resorting to the reserve fund for retirees tax return after using the so-called “piggy bank pensions “earlier this month to pay the extra pay summer.
After announcing last week that used 8,700 million euros for the extra pay of pensioners July, on Wednesday announced another provision of 1,000 million euros for the tax settlement.
Discounting the new disbursement, the Reserve Fund has 24,207 million, about 2.24 percent of GDP, equivalent to about three pay extras pensions.
the caretaker government has said it will continue using money from the fund as long as the situation of temporary deficit of the public pension system, including the next extra pay under Christmas.
in 2011, a year before the economic crisis compelled to resort to the reserve fund, the endowment of the “piggy bank” was 66,815 million euros.
Since 2012, they have had to draw from that fund whose capital is invested in debt publicly a total of 47,200 million euros, with the loss of three million contributors by the economic crisis.
the Bank of Spain, the Independent Authority Fiscal Responsibility (trade show) and the government itself have agreed in recent times in the need to revise the system of financing Social Security to anchor the deficit targets and ensure the welfare state while the background continues to decline.
Although job creation in recent months, bases lower contribution for the growth of precarious jobs with lower wages and introduction of flat rates for freelancers and to promote indefinite contracts have slowed the rise income from social security.
This morning, the trade show strongly warned the government of the fiscal deviation and said that the gap in the accounts of social security was the main element of concern.
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