President Santiago Peña confirmed this Saturday (16) that the monthly deficit of the Social Insurance Institute (IPS) is above US$ 20 million, as had been pointed out by the institution's president, Isaías Fretes. In a statement during a visit to works on Avelino Martínez Avenue in San Lorenzo, Peña stated that the problem is an economic and financial equation: contributions from workers and employers cover two services—retirement and health—and if it were necessary to cover 100% of benefits, the deficit would be even greater.
“Retirement is not an arbitrary calculation, it is mathematical. If I contribute 10, I cannot receive 20, because someone is paying. In this case, the one paying is the State with its taxes,” said Peña, comparing the situation with the recent debate on the Fiscal Fund.
The president presented two solutions: increasing revenue and reducing evasion in social contributions, combined with greater efficiency; and buying only what is necessary, at competitive prices. Peña also stated that he asked Fretes to identify where expenses can be cut, mentioning that the institution spends on unnecessary items.
Fretes, in turn, described the moment as one of the most difficult in IPS history and defended a deep administrative and medical reorganization. He announced the elimination of medications and supplies from the formulary that, according to him, “were being bought haphazardly.” Despite the supply crisis and irregularities, Fretes stated that he does not fear political pressure, but that he will present formal complaints only when he has all the necessary documentation and evidence.
“This institution is going through very difficult times. It has a rich brother, which is the pension part, and a medical part that is very poor and orphaned,” declared Fretes, explaining that legal restrictions prevent the use of pension funds to support the health system, leading to the search for mechanisms to “oxygenate” the medical area financially.