Reform of Social Security

In comparison with 2015, when it was at R $ 85.81 billion, the deficit grew 74.5%. Figures show importance of Pension Reform

The breakdown in social security accounts closed last year at R $ 149.73 billion - the highest value since 1995. The information is from the Secretary of Social Security and was released on Thursday (26).

Compared to 2015 when the deficit was R $ 85.81 billion , the shortfall grew 74.5%. This amount, updated by the inflation of the period reaches R $ 151.9 billion. 

Marcelo Caetano, head of the Social Security Secretariat, classified the increase as expressive. As a proportion of the Gross Domestic Product (GDP), it jumped from 1.5% in 2015 to 2.4% in 2016.

Caetano explained that two factors led to an increase in the welfare gap: the aging population and the weaker labor market last year. According to him, from the 2020s Brazil will undergo a more intense process of aging, which will put even more pressure on public accounts.

"We will converge towards a European demographic pattern. When we get there, we're going to look like Europe, not today, but what will Europe be up front? "

Importance of Pension Reform

According to the secretary, even without the resignations, which totaled $ 36.197 billion last year, the gap would still be great. These numbers, explained Caetano, show the importance of the Social Security Reform sent by the government to the National Congress.

"The government has forwarded the proposal and the perspective is to try to approve what was sent," he noted. He considered, however, that Congress, as an environment of democratic debate, will define how the reform will be approved.