2024-03-20 18:39:43
The deficit in Social Security and the Old Age Solidarity Fund was reduced by nearly 9 billion euros in 2023 to reach 10.8 billion, the ministry responsible for public accounts announced on Wednesday March 20.
The “Secu gap” nevertheless remains 2.1 billion euros higher than the forecasts of the Social Security financing law for 2024 (LFSS 2024) adopted in December 2023 – which anticipated a deficit of 8.7 billion euros in 2023 – due to lower revenue than expected, detailed the government in a press release sent to Agence France-Presse.
“The deficit improved by 8.9 billion euros compared to 2022”the year in which it stood at 19.7 billion euros, welcomes Bercy, “and has almost quadrupled since the historic low point of 2020”where expenses linked to the Covid-19 pandemic had caused the Social Security accounts to plunge to a deficit of 39.7 billion euros.
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A hole of 17.7 billion expected for the year 2027
In 2023, spending was “generally compliant” to the forecast of the LFSS 2024, but “receipts experienced significant losses, linked to the macroeconomic deterioration”.
Social Security received fewer contributions and social security contributions from activity than expected (−1.1 billion euros compared to forecast) due to a less dynamic payroll than anticipated in the private sector. And the weak economic growth in 2023 has reduced tax revenue (−1.5 billion euros compared to forecast) for Social Security. On the expenditure side, those of Health Insurance reached 247.8 billion euros in 2023, close to the objective set in LFSS 2024.
Social Security brings together several branches of social protection: health insurance, work accidents and occupational illnesses, family, old age and autonomy.
The government expects its deficit to widen once more in the years to come, with a hole of 17.7 billion expected for the year 2027. In total, Social Security should accumulate 60 billion in deficits by 2027, according to the High Council for Financing Social Protection.
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