Pensions push up social security spending

Expenditure on social security benefits increased by 6.6 per cent in the first nine months of this year over the same period last year due to higher outlays on retirement pensions, according to the National Statistics Office.

The NSO said that total expenditure on social security benefits amounted to Lm174.4 million, up by Lm10.8 million. This reflected an increase of Lm9.5 million on the contributory benefits category and Lm1.3 million on the non-contributory benefits category.

The increase in contributory benefits was driven mainly by a Lm7.4 million increase in pensions in respect of retirement, which amounted to Lm78.8 million.

This increase was primarily underpinned by outlays on the two-thirds pension, in good part reflecting a rise in the number of beneficiaries.

Pensions in respect of widowhood increased by Lm1.6 million in the survey period under review while pensions in respect of invalidity rose marginally as benefits in respect of industrial injuries declined.

In the first nine months of 2006, the rise in expenditure on non-contributory benefits was underpinned by higher outlays on old age pensions, which increased by Lm0.4 million, and on social assistance, which rose by Lm0.6 million.