The lack of budgets - those for 2018 are still in force and extended - has forced the acting Government to dip into what is known as the pension piggy bank. In addition to the transfer of 600 million euros from the Public Treasury to Social Security, the Executive has announced a spending authorization and the disposal of 3,598.20 million euros from the Social Security Reserve Fund. The measure has been adopted through the approval of a decree in the Council of Ministers this Friday. Read more: Pension spending rises in October to the record figure of 9,710 million, 4.9% more The 600 million euros from the Public Treasury are added to the 1,331.9 million contemplated in the extended 2018 budgets, which remain in force. The acting Minister of Labor, Migration and Social Security, Magdalena Valerio, was in charge of presenting these measures and recalled that if we had current budgets, this decree would not have been "necessary.
The Executive will also have 3,598.20 million euros from the Social Security Guarantee Fund, popularly known as the pension piggy bank. Valerio has warned that this provision is that of a "maximum limit" that he hopes will not be spent completely. "I hope and wish not," he has defended, although he has alluded to the price data for the last months of the year. Valerio recalled that Middle East Phone Number List this amount is a maximum limit because it is the maximum amount allowed by the regulations on the Reserve Fund. In order to be able to make payments for both the December payrolls and the extra pension pay, the Government also contemplates an authorization of expenses in this recently approved decree. In addition to the provision of the 600 million from the Treasury and the maximum amount of the piggy bank, the Government has insisted that they will execute this authorization of expenses taking into account the projection of what will be collected in contributions during the last months of 2019.
"We will be able to finance these amounts thanks to the increase in income from social contributions in 2019: due to the salary increase as a result of the negotiation of collective agreements or the increase in the interprofessional minimum wage," he exemplified. "There is more employment and more contributions, they are performing very well and are rising approximately 8%." Read more: One of the most influential economic lobbies in Spain warns about the impact of linking pensions to the CPI: up to 327,000 million in the coming decades Despite the optimism of the head of the portfolio, media outlets such as the newspaper El País have recalled that the Guarantee Fund will end the year with barely 1,500 million euros, as long as the entire "maximum limit" that it requires is available.