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Government spending on benefits rises by 9.2%

Expenditure on social security benefits rose by 9.2 percent during 2008, driven mainly by outlays on pensions and children's allowance, the NSO said today.

Government expenditure on social security benefits in 2008 amounted to €624.8 million, up by €52.5 million over the previous year. This reflected higher expenditure of €37.8 million on contributory benefits. Non-contributory benefits rose by €14.7 million.

The NSO said that outlay on social security benefits last year made up 11 percent of the GDP at current market prices, an increase of 0.5 percentage points over 2007.

The increase in contributory benefits was essentially the result of a €31.8 million growth in retirement pensions, which amounted to €294.0 million.

Invalidity pensions declined by €2.3 million during the period under review, while benefits relating to industrial injuries edged up 3.0 percent.

Widows pensions increased by €3.8 million while the Other Benefits went up by €0.5 million.

Non-contributory benefits increased by €14.7 million over the outlay in 2007. Most of the increase was attributed to an €11.1 million rise in outlays on Children's Allowance. Old Age Pension, Disability Pensions/Allowance, Social Assistance and Medical Assistance rose by €0.4 million, €0.9 million, €1.1 million and €0.3 million respectively.

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