Brasília, July 25, 2003 (Agência Brasil - ABr) - The Social Security system had a R$ 9.6 billion deficit in the first half of 2003. Revenues totalled R$ 36.1 billion, while outlays came to R$ 45.6 billion. Compared with the first half of 2002, the deficit grew 16.6%, equivalent to R$ 1.4 billion.

Even though there was a real reduction of 2% (R$ 0.9 billion) in the cost of Social Security benefits, caused mostly by inflation, the chief factor behind the deficit in the first semester was a 6% (R$ 2.3 billion) drop in net revenues. In June, the deficit amounted to R$ 1.8 billion, with revenues of R$ 6.17 billion and benefits costing R$ 7.98 billion.

This information was released today by the secretary of Social Security of the Ministry of Social Security, Helmup Schwarger. He explained that the "poor collection" in the first half of the year occurred as a result of the real decline in salaries and the negative performance of the labor market. He hopes that the tendency for interest rates to decline and other policies, such as microcredit, can reactivate the economy and thus balance the accounts of the Social Security system over the course of the second semester. (DAS)