In its opinion on the General State Accounts for 2024, released today, the Economic and Social Council (CES) highlights that the document “does not exhaustively specify the nature of state budget transfers to Social Security nor their intended purpose.” It argues that the budget execution data “do not allow for the identification of whether the State Budget funded measures to mitigate the geopolitical shock within the Social Security framework.”
In this context, CES reiterates the recommendation that exceptional Social Security measures should be financed through the State Budget, stating that “this is the appropriate methodology for such situations.”
Simultaneously, it “considers the level of clarity regarding internal transfers within the Social Security system inadequate, particularly between the system of citizenship social protection and the social insurance system,” according to the document approved on Friday.
Therefore, within the Social Security budget execution framework, CES recommends that “the accounts of the different systems and subsystems should be detailed.”
“This will enable clearer information on the budget execution of two fundamentally different nature systems, one funded by taxes—the citizenship social protection system—and the other mainly by social contributions—the social insurance system,” it advocates.
