Kenneth Rapoza – Forbes, 07/25/2012
Right-thinking political junkies may love to hate social security in the U.S., but at least it’s not in deficit mode like it is in Brazil.
Tax receipts funding Brazil’s bloated public pension program decelerated in June by 5.1 percent, causing the overall deficit balance — money in, money out — to be 9 percent at the start of July. With the economy slowing, meaning less taxes going into the system, it is likely to be worse this month.
Leonardo Rolim, Brazil’s Secretary of Social Security, said during a press conference in Brasilia that total outflow this year was more than R$100 billion (about $50 billion), the most ever. The value includes Brazil’s base line social security program, known as INSS (R$60 billion) and government employee pensions taking up the rest. Wednesday was the first time this data was released to the public.
[...] falling job creation rates, decreasing federal tax revenues, dwindling consumer confidence, and a social security program plummeting deeper into the red. However, these less-than-positive developments are assuaged by some good news: though President [...]