Public accounts go from a surplus to a deficit of 1.8 billion. Social Security increases slack

The increase in spending, particularly in Central Administration, took public accounts into negative territory until May, but Social Security maintained a robust surplus. Late payments fell compared to 2025.

Public Administrations registered a deficit of 1,762 million of euros until May, against a surplus of 638 million in the same period of 2025, a deterioration explained mainly by the Central Administration, despite the improvement in the Social Security balance.

According to the budget execution summary by the Budgetary Entity, formerly the General Directorate of the Budget, the Public Administration balance increased by 2,400.2 million euros compared to the same period last year.

The greatest pressure came from the Central Administration, whose balance fell by 3,344.1 million euros, or 2,174.2 million excluding the effect of payments to settle National Health Service debts.

The evolution of public accounts reflects a growth in expenditure greater than that of revenue. Excluding the effect of SUS payments until May, expenditure increased 6.8%, above the 3.5% increase in revenue. In Public Administrations as a whole, expenditure worsened by 9.7% and primary expenditure increased by 10.3%.

Conversely, Social Security continued to show significant slack. The system’s surplus rose to R$3,675.5 million by May, above the R$2,914.1 million recorded in the same period last year.

Effective Social Security revenue increased from R$17,603.1 million to R$18,957.7 million, while effective expenditure increased from R$14,689 million to R$15,282.1 million.

Among the items with the greatest growth in Social Security, the highlights are the supplement to the social benefit for inclusion, which increased by 42%, and the support allowance for informal caregivers, which increased by 23.7%. In the opposite direction, pensions for beneficiaries of ex-combatants were reduced, by 36.9%, and the supplement to extraordinary support for children and young people, by 13.6%.

Regional and Local Administration ended May with a positive balance of R$622.8 million, R$182.5 million more than a year ago. The Regional Administration recorded a deficit of 95 million, while the Local Administration presented a surplus of 717.8 million.

The summary also shows a significant reduction in late payments from public entities. At the end of May, they totaled 314.3 million euros, 336.9 million less than in the same period last year, although they increased by 17.1 million compared to April. The annual drop is mainly due to the reduction of 308.7 million in healthcare.