Pension fund deficit reaches $249 million in seven months

Paraguay's public pension fund, known as Caja Fiscal, has accumulated a deficit of approximately $249 million (G. 1.49 trillion) by the end of July 2026. This figure highlights a significant gap, with pension payments exceeding contributions by 40%.

Official data from the Ministry of Economy and Finance (MEF) reveals that in July alone, the fund's expenses surpassed its income by G. 177.7 billion ($30 million). Although this monthly deficit showed a slight decrease compared to June, the cumulative shortfall for the year remains substantial. State resources, funded by taxpayers, are used to cover this monthly gap.

The deficit's slowdown is partly attributed to recent adjustments in the law. Daily, the Caja Fiscal incurs a deficit of about $1.1 million. While the dollar value of the deficit has increased by 25% compared to the same period last year due to currency fluctuations, the nominal amount in Paraguayan guaranis has remained relatively stable.

The fund, managed by the MEF's Directorate General of Pensions, covers 242,141 active contributors and 73,632 retirees, plus 12,480 pensioners. Deficit-heavy sectors include the military, police, teachers, university professors, and judicial magistrates, with teachers alone accounting for 50% of the total deficit. The military sector shows the largest disparity, with expenses significantly outstripping income.

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The deficit of the teachers explains 50% of the result, according to an official report from the MEF.