At the present juncture, the social security model in Brazil
represents a serious structural problem of Brazilian public
accounts. It is precisely in this context that the country is
undergoing the need for emergency imposition of a “pension
reform” with the purpose, above all, of making the constitutional
rights of Brazilian workers more flexible. In general terms, the
problem of the social security deficit is caused by the financial
imbalance of the Brazilian social security system, which is
manifested at the moment that the income is less than the
expense. This problem characterizes the crisis of the social
security system, which is due to several reasons: 1) gradual
aging of the population; 2) reduction of population growth;
3) difficulty in making changes or adjustments to the rules of
pensions through a pension reform; and 4) changes in the labor
market. In this context, we identify the research problem; we can
formulate, from now on, the fundamental objective of this article:
to investigate and subsequently discuss the determinant causes
of the deficit of the social security regime in between 2005-
2018, which put the country in this in a crisis condition. The
main conclusion is that part of social security revenue, instead
of financing pensions, is simply diverted to other uses or used as
an available financial asset, which ends up imparting a vain idea
of a high primary surplus by reducing net debt consolidating the
Union, providing an imaginary perception of sustainability to the
federal government’s solvency indicators and the Central Bank’s
credibility with the financial market.
|
