This Tuesday, the Government approved a credit transfer of 2,090.3 million euros to the Ministry of Inclusion, Social Security and Migration to finance non-contributory Social Security pensions. The measure has been authorized by the Council of Ministers and aims to guarantee the financing of these benefits during the 2026 financial year, in compliance with the commitments acquired by the State in the Toledo Pact.
As reported by the Ministry of Finance and reported by Europa Press, this contribution of money will allow the existing budget to be increased by 2026 and thus meet the State’s contributions to the Social Security budget, in accordance with the first recommendation of the Toledo Pact of 2020, which refers to the separation and clarification of financing sources.
This new contribution comes just after the Executive approved a new loan to Social Security to finance the contributory pension system also, which could reach 10,003.8 million euros, thus increasing its debt to approximately 146,000 million. Of course, unlike that loan, the 2,090.3 million approved now correspond to a budget transfer and not a credit that must be returned.
The Ministry of Finance sees it as an “unavoidable and unavoidable” need.
The first recommendation of the Toledo Pact establishes that contributory benefits should be financed mainly through the social contributions of workers and companies, while non-contributory and universal benefits should be financed exclusively from the General State Budgets.
In this sense, the Treasury has quantified the financing needs for this year at 2,090.3 million euros, considering that these are “unavoidable and non-postponable” needs to comply with the State’s commitment to progressively assume the financing of non-contributory expenses.
Finally, the operation is protected by article 12.4 of the General State Budget Law for 2023, which continues to be extended in 2026, and in the thirty-second additional provision of the General Social Security Law.