Paraguay's Public Pension Fund Faces $182 Million Deficit

Paraguay's public pension fund, known as Caja Fiscal, continues to face a growing deficit, reaching an estimated $182 million by May. This figure represents a significant 42% difference between the contributions received and the pension payments disbursed. The shortfall is covered monthly by state funds, meaning taxpayers are footing the bill for the growing gap.

Official data from the Ministry of Economy and Finance reveals that in May alone, contributions to the pension fund totaled 320.47 billion Paraguayan guaranis, while expenditures reached 549.36 billion guaranis. This resulted in a monthly deficit of approximately $37.5 million. On a daily basis, the Caja Fiscal generates a deficit of about $1.2 million.

When compared to the previous year, the deficit in dollar terms has increased by 41%, partly due to currency exchange rate fluctuations. The fund, managed by the General Directorate of Pensions and Retirements, covers 242,141 active contributors and supports 73,080 retirees and 12,481 pensioners. Analysis by sector shows that the military, police, judiciary, and university professors are the most significant contributors to the deficit, with military and police pension expenses far exceeding their respective contributions.