The state increasingly finances social security

THE ECO SCAN – According to the report of the Court of Auditors on the State budget in 2014, social security payments are not sufficiently controlled.

• The state budget for social security increases by 723 million euros in 2014

The state budget finances social benefits provided by social security bodies – allowance for disabled adults, housing assistance, active solidarity income (RSA) -, and social security contribution exemption measures in favor of geographic areas and specific audiences. It also pays grants to special retirement schemes.

State aid increased by 722.8 million euros in 2014, or nearly 3% compared to 2013.

This increase is essentially linked to the dynamism of intervention expenditure, in particular for the. State payments for this item have been multiplied by more than 2.5 times from 370 million euros in 2013 to 968.4 million in 2014, according to the Court of Auditors on the state budget in 2014. The 598.4 million euros more in 2014 for the RSA represent more than 80% of the expenses in addition.

• More than 56 billion in taxes to finance social security in 2014

In 2014, the state recovered 56.1 billion euros in taxes allocated to the financing of social security, against 51.8 billion euros in 2013, indicates.

• The State debt with regard to social security increased by 119 million euros in 2014

The half-year statement closed on December 31, 2014 shows a net debt of the State with regard to social security of 367.70 million euros against 249.05 million at the end of 2013, after a net debt of 244.4 million euros at the end of 2012 and 483 million euros at the end of 2011, can we read in the report.

State-funded social benefits systems show an increasing funding shortfall: 407.1 million euros in 2014 compared to 305.9 million euros in 2013.

In addition, the targeted exemption schemes for social contributions compensated by the State budget present an aggravated funding shortfall to the tune of 322.3 million euros in 2014, against 59.7 million euros in 2013.

These funding shortfalls are partly offset by funding surpluses related to exemptions offset by tax revenue (receivable of € 144.1 million) and residual arrangements (receivable of € 133.1 million at December 31, 2014) .

Since the clearance in 2010 of the State’s debts with regard to social security, which had allowed the recognition of a State debt of nearly 500 million euros, the net situation of the financial relations between the State and social security have continued to deteriorate: the State debt of 244 million euros recorded at the end of 2012 turned into a debt of 249 million euros at the end of 2013 , aggravated by 119 million euros at the end of 2014.

The State debt of 368 million euros with regard to the constitutes an additional deferral of charges in 2015, recalls the Court of Auditors.