Africa-Press – Cape verde. The Union of Independent and Democratic Cape Verdeans (UCID, opposition) drew attention on Wednesday in Mindelo to the increase in social benefit expenses, which have risen more than contributions to the social security system.
The issue was addressed today by the party’s deputy, Zilda Oliveira, at a press conference before the parliamentary session, which begins on Wednesday, the 25th, in Praia.
According to the deputy, the situation of social protection in the country and the sustainability of the system “must be analyzed based on official figures and in a serious and responsible manner.”
Referring to official data, the same source indicated that the 2024 accounting report of the National Social Security Institute (INPS) shows two realities, the first being that the system shows signs of robustness at present, with 124,601 active insured individuals and 288,233 registered protected persons.
A scenario in which declared contributions reached 13,815,000 escudos, an increase of 11.6 percent (%), “meaning that the system continues to collect well and that there is management capacity in the short term”.
But the second reality, Zilda Oliveira stressed, is the most worrying, since spending on social benefits increased by 11.8%.
“In other words, social spending is growing more than contributory revenue, which is a serious warning sign. Pensions also continue to gain weight in the system,” considered the UCID deputy, pointing to data showing that the system is being overburdened with old-age pensions, medical evacuations and debts from partners.
Even so, the party’s national representative warned of an “even more worrying” fact, the fact that INPS itself admits that it did not carry out an actuarial study in 2024 and used previously collected data as a basis.
“The pension system cannot be managed blindly. Without an updated actuarial study, the country does not know with certainty the true resilience of the system in the medium and long term. It is unknown when the pressure on the pension system might become more severe,” she warned.
To avoid serious consequences, the same source asked the government to implement measures already suggested by the International Monetary Fund (IMF).
When asked if raising the retirement age could be one of the solutions to balance the system, Zilda Oliveira admitted it was a possibility in the medium and long term, as the IMF itself recommends, but stressed the possibility that it might not be well received by workers.
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