Social coverage optimization to reduce social security deficit

Abstract

The trajectory of social security financial balance, reported by the overall economic tables, reveals three phases of development. The first: growing financial surplus from 1970 to 1986. The second: the decreasing financial surplus, from 1987 to 1990. The oil counter-shock causing the fall of state's revenues, forcing it to review its economic model. The Third: is the growing deficit phase, which began in 1991 and still rising to exceed 800 billion DA in 2021. This deficit is due to the financial crisis of the national pension fund (CNR). Several studies call for the extension of social security coverage to overcome this imbalance, this work attempts to verify this hypothesis, using a scenario based on the assumption of a 100% social contributions recovery. The findings confirm the structural nature of the deficit and the urgent need to systematic reforms.