The deficit in Social Security and the Old Age Solidarity Fund (FSV) was reduced by almost 9 billion euros in 2023 to reach 10.8 billion, the Ministry for Public Accounts indicated this Wednesday, March 20.
The “Secu hole” is nevertheless 2.1 billion euros higher than the forecasts of the Social Security financing law for 2024 (LFSS 2024) adopted in December – which anticipated a deficit of 8.7 billion euros in 2023 – due to lower revenue than expected, the government detailed in a press release sent to AFP. “The deficit improved by 8.9 billion euros compared to 2022”, the year when it stood at 19.7 billion euros, welcomes Bercy, “and has been almost divided by four since the historic low point of 2020″, where expenses linked to the Covid-19 pandemic had caused the Social Security accounts to plunge to -39.7 billion euros.
Fall in revenue
In 2023, expenditure was “generally in line” with the forecast of the LFSS 2024, but “receipts experienced significant capital 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 last year’s weak economic growth reduced tax revenues (-1.5 billion euros compared to forecast) for Social Security.
On the expenditure side, those for health insurance reached 247.8 billion euros in 2023, close to the objective set out 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 again 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 cumulative deficits by 2027, according to the High Council for Social Protection Financing (HCFiPS).