Jim O'Keeffe
Question:65 Deputy Jim O’Keeffe asked the Minister for Social Protection the position regarding the social insurance fund; the estimated deficit at the end of the year and the steps proposed to deal with same. [43766/10]
View answerTuesday, 23 November 2010
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Traditionally, social insurance spending has been funded on a tripartite basis — with contributions coming from the Exchequer, employers and employees. Legally, the Exchequer is the residual financier of the fund and Exchequer contributions were the norm for over forty years — for example, in 1967, the State contribution was 38% of SIF expenditure and almost 29% in 1985. However, no Exchequer contribution was required between 1996 and 2009 as the fund was in surplus on foot of contributions from employers and workers. The following table summarises the financial position in relation to the social insurance fund:
|
2010 Estimated Outturn |
€000 |
|
Income |
6,632,878 |
|
Expenditure on schemes & administration |
9,493,205 |
|
Current year operating deficit |
2,860,327 |
|
Surplus carried forward from previous year |
891,543 |
|
Exchequer subvention required |
1,968,784 |
Issues relating to the financing of the social insurance fund are for consideration by Government in a budgetary context.