Portuguese social security surplus shrinks slightly amid rising costs

Lisbon, Aug 31: Portugal's Social Security system recorded a surplus of 2,712.4 million euros by the end of July 2024, slightly down from 2,756.0 million euros in the same period last year, according to figures released by Portugal's Directorate-General for the Budget.

This decrease occurred as Social Security spending increased by 12.4 per cent to 20,698.3 million euros, outpacing a 10.5 per cent rise in revenue, which reached 23,410.7 million euros, reports Xinhua news agency.

Pensions contributed significantly to the higher expenses, rising by 13.0 per cent to 12,924.8 million euros, with old-age pensions seeing a 14.1 per cent increase. Meanwhile, unemployment benefits grew by 19.0 per cent, totalling 928.6 million euros by July.

Additionally, the inflationary and energy crisis impacted the state's finances, costing 1,651.8 million euros by July.

This included a revenue decrease of 722.8 million euros and an expenditure increase of 929 million euros, largely due to tax adjustments and energy support measures.

Despite these challenges, state tax revenue grew by 7.6 per cent, totalling 33,403.7 million euros, driven by increases in Corporate Income Tax and the Tax on Petroleum Products