Social Security accounts have a positive balance of 1,658.63 million euros as of June 30, 2019, 0.13% of GDP, resulting from the difference between rights recognized by non-financial operations of 71,960.76 million euros. euros, which show an increase of 7.05% and recognized obligations of 70,302.13 million euros, which grew by 9.47%, compared to the same period of the previous year.
Of the total volume of rights recognized, 90.77% corresponds to the managing entities and common services of the Social Security and the remaining 9.23% to the mutual collaborators with the Social Security. Regarding the obligations, 91.54% have been recognized by the managing entities and common services of the Social Security and 8.46% by the mutual partners.
In cash terms, the system's liquid collection reaches 70,737.42 million euros, with a percentage increase of 7.12% over the previous year. On the other hand, the payments showed an increase of 9.34%, totaling 70,082.50 million euros.
Non-financial income
The social contributions amounted to 61,296.57 million euros, which represents, compared to the same period of the previous year, an increase of more than 4,500 million euros in absolute terms and 7.94 percentage points in relative terms, which is caused by the increase in the contribution of employed persons by 7.77%, while the contribution of the unemployed registered an increase of 11.02%.
Overall, Social Security plans to enter this year a total of 114,915.75 million euros in social contributions. In this way, the revenue from contributions represents, at the end of June, 53.34% of the forecast for all 2019.
Current transfers totaled 10,042.20 million euros, with an increase of 2.23% on the amount at the same date of fiscal year 2018. Although the interannual variation is not significant, it should be taken into account that, as of June 30 of 2019, the amount of 666 million euros has been recognized as a contribution from the State to support the Social Security budget balance established by Law 6/2018, of July 3, on General State Budgets for 2018, which in the same period of the previous year it had not yet been recognized. However, this increase has been offset by the decrease in transfers received by the State, in the form of non-contributory benefits and supplements for minimum pensions, for a lower amount of 693.35 million euros over the same period of the previous year , on the occasion fundamentally of the change in their periodicity.
Equity income recorded 25.33 million euros, with a year-on-year decrease of 44.99%, and rates and other income reflect the amount of 569.53 million euros, with a year-on-year increase of 4.04%.
Non-financial expenses
The economic benefits to families and institutions totaled 65,688.67 million euros, an increase of 8.74% over the previous year. This figure represents 93.44% of the total expenditure made in the Social Security system. The largest item, 60,514.63 million euros, corresponds to pensions and contributory benefits, with an inter-annual growth of 9.15%.
In a detailed analysis of the tax area, pensions (disability, retirement, widowhood, orphanhood and in favor of relatives) reach an amount of 54,809.15 million euros, 7.17% higher than the previous year.
Regarding maternity, paternity and risk benefits during pregnancy, they rose to 1,232.28 million euros, which represents a 6.74% year-on-year increase. In temporary disability, the expense incurred amounts to 4,283.27 million euros, 45.58% more than in the same period of the year 2018, growth affected, as indicated below, 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 2018, amounting to 978.58 million euros, as a result of the change in the budget allocation criteria. Without taking this change into account, the cost of temporary disability was 3,304.69 million euros, which represents an increase of 12.32%, compared to the same period of the previous year.
Likewise, it is worth mentioning the inter-annual growth of the expenses of the mutual collaborators with the Social Security, in concept of contribution to the maintenance of the common services and of obligatory and optional reinsurance due to the fact that since they are expenses associated with the collection, it has determined that those corresponding to November and December 2018 have been allocated to the 2019 budget, as a result of the current budget allocation criteria. According to these criteria, the annual increase in these expenses has risen to 38.44%, although in terms of homogeneous comparison the increase would have been 8.60%.
As of June 30, pensions and non-contributory benefits, including supplements for minimum contributory pensions, reach an amount of 5,174.04 million euros, a figure that represents an increase of 4.19% over the previous year. Of this amount, it goes to non-contributory and minimum pensions 4,323.34 million and subsidies and other benefits 850.70 million euros, of which 812.66 million euros correspond to family benefits, 3.21% higher than the previous exercise.
With regard to management expenses incurred by Social Security, they have experienced an increase of 2.82% in personnel expenses, an increase of 1.73% in current expenses of goods and services and a decrease of 29.51 % in expenses dedicated to investments. With a global increase of 1.51% year-on-year.
Homogeneous comparison
Notwithstanding the foregoing, in 2019 there has been a change in the criterion of the budgetary allocation of certain expenses of November and December 2018 associated with the collection, which has determined that said expenses are attributed to the year 2019, despite having accrued in 2018.
Accordingly, to establish a homogeneous comparison with the previous year, it must be taken into account that, up to June 2019, 1,324.36 million euros of expenses accrued in the months of November and December 2018 have been allocated, which fundamentally They correspond to the delegated payment of temporary disability and the contribution by the collaborating mutual companies to the maintenance of the common services and that, consequently, must be reduced from the 2019 exercise.
All this translates into the fact that the amount of the expenses until June 2019 would be 68,977.77 million euros (70,302.13 -1,324.36).
Summarizing, in homogeneous terms, the positive balance accumulated in the first six months of this year amounts to 2,982.99 million euros, which is the difference between net recognized rights for non-financial operations of 71,960.76 million euros and obligations recognized of 68,977.77 million euros.
Also, in June 2018, the additional revaluation of pensions from 0.25 to 1.6% overall and 3% of the minimum pensions established in the General State Budget Act for 2018 had not yet been applied, which means , in terms of homogeneity, that the accumulated expenditure in the first six months of last year should be increased by 619.34 million more, which puts the total of that period at 64,839.21 million euros (64,219.87+ 619.34 ).
This translates into a 6.38% increase in spending in the first six months of 2019 compared to the same period of 2018.