Monday, 29 November, 2021

Covid: Social Security deficit increased by 8 billion euros in 2021


The Minister for Public Accounts, Olivier Dussopt, on Monday revised upwards the deficit forecast for the general scheme and the old-age solidarity fund, to 35.7 billion euros in 2021. A widening linked to the slightest rebound of growth.

The Minister Delegate for Public Accounts Olivier Dussopt announced on Monday a further deterioration in the Social Security budget forecast for 2021.

Unlike the State, which has collected them since April, Social Security has managed to get through the year of the Covid without amending budgets. But how many corrections have been made to the Social Security financing bill for 2021 since October …

Monday, on the occasion of the return of the text to the National Assembly, at second reading, the Minister for Public Accounts, Olivier Dussopt, again modified the financial forecasts. An erasure of nearly 8 billion.

The government now forecasts that the deficit of the general scheme and the old-age solidarity fund will amount to 35.7 billion euros in 2021, 7.8 billion more than the previous forecast. “We will not modify the Ondam 2020”, said the minister, who has already updated this health insurance spending target twice at first reading, before each chamber of Parliament and revised the 2020 revenues in the Senate. Acceleration of “Ségur” upgrades, additional measures to encourage caregivers to sacrifice their All Saints holidays, economic damage from re-containment: the deficit for 2020 is now expected at 49 billion euros, i.e. 4.6 billion more than expected in September.

New management tools

For 2021, the government draws the consequences of the second confinement, which has already led it to lower its growth forecast to + 6%, while a rebound of 8% was previously hoped for. The increase in the private sector payroll is therefore reduced to 4.8% next year, significantly less than expected, which represents 6 billion euros less contributions for Social Security. The rest of the differential would come from lower tax revenues, which are also due to weaker growth. Bercy still has to update in the coming days its forecast of public deficit for 2021 which, given the scale of the revision concerning Social Security, will be significant.

Olivier Dussopt explained on Monday that the government counted “Work on new public finance management tools”, taking better account of the multi-annual budget. These works will take place “In the weeks and months to come, both for Social Security and for the State”. The Ondam overhaul project has already made good progress under the aegis of the High Council for the Future of Health Insurance, which published a first report in July.

The Minister for Public Accounts, Olivier Dussopt, on Monday revised upwards the deficit forecast for the general scheme and the old-age solidarity fund, to 35.7 billion euros in 2021. A widening linked to the slightest rebound of growth.

The Minister Delegate for Public Accounts Olivier Dussopt announced on Monday a further deterioration in the Social Security budget forecast for 2021.

Unlike the State, which has collected them since April, Social Security has managed to get through the year of the Covid without amending budgets. But how many corrections have been made to the Social Security financing bill for 2021 since October …

Monday, on the occasion of the return of the text to the National Assembly, at second reading, the Minister for Public Accounts, Olivier Dussopt, again modified the financial forecasts. An erasure of nearly 8 billion.

The government now forecasts that the deficit of the general scheme and the old-age solidarity fund will amount to 35.7 billion euros in 2021, 7.8 billion more than the previous forecast. “We will not modify the Ondam 2020”, said the minister, who has already updated this health insurance spending target twice at first reading, before each chamber of Parliament and revised the 2020 revenues in the Senate. Acceleration of “Ségur” upgrades, additional measures to encourage caregivers to sacrifice their All Saints holidays, economic damage from re-containment: the deficit for 2020 is now expected at 49 billion euros, i.e. 4.6 billion more than expected in September.

New management tools

For 2021, the government draws the consequences of the second confinement, which has already led it to lower its growth forecast to + 6%, while a rebound of 8% was previously hoped for. The increase in the private sector payroll is therefore reduced to 4.8% next year, significantly less than expected, which represents 6 billion euros less contributions for Social Security. The rest of the differential would come from lower tax revenues, which are also due to weaker growth. Bercy still has to update in the coming days its forecast of public deficit for 2021 which, given the scale of the revision concerning Social Security, will be significant.

Olivier Dussopt explained on Monday that the government counted “Work on new public finance management tools”, taking better account of the multi-annual budget. These works will take place “In the weeks and months to come, both for Social Security and for the State”. The Ondam overhaul project has already made good progress under the aegis of the High Council for the Future of Health Insurance, which published a first report in July.