O National Social Security Institute (INSS) asked the economic team of President Luiz Inácio Lula da Silva’s government for an additional R$3.2 billion this year to honor the payment of social security benefits and compensation owed to states and municipalities.
The information was published in the edition of this Thursday, 21st, of Folha de S.Paulo. The newspaper had access to a letter from the INSS sent to the Budget and Finance ministries.
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The letter informs that the increase of R$ 1.6 billion is necessary to face the increase in the number of benefits granted, resulting from the measures to reduce the queue of beneficiaries adopted just over three months ago.
The other half of the amount will be used as social security compensation due by the INSS when a former insured person ends up retiring under a State or municipality’s own regime.
As this is a mandatory expense, the government must block resources for programs in other departments. So far, the Lula government has blocked R$3.2 billion in the 2023 Budget: R$1.7 billion in the second two months and R$1.5 billion in the second half of July.
Health and education were affected by the cut of at least R$800 million in July. The first cut affected the ministries of Cities, Transport, Development and Social Assistance, Family and Fight against Hunger, Integration and Regional Development, Finance and Planning and Budget.
Situation could get worse, says INSS
INSS spending projections grew after the bonus program for employees and experts to reduce the queue of almost 1.7 million requests | Photo: Reproduction/INSS
According to Sheet, in the letter the INSS warned that the situation could worsen in the coming months. Since the beginning of the year, the agency has identified an average growth of 0.39% per month in benefit payroll values, a “significant increase in the average”, according to technicians.
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Therefore, there may be “additional increases in the budget allocation, especially if the vegetative growth of social security expenses remains above current projections”.
INSS spending projections grew after the bonus program for employees and experts was reduced the queue of almost 1.7 million orders.
In addition to the need for extra resources in 2023, the letter asks the economic team to “urgently” release another R$1.3 billion already allocated for this purpose, “with a critical deadline of September 30, 2023”.
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