Expenditure on Social Security benefits rose by 5.7 per cent during the first half of 2007, driven mainly by outlays on retirement pensions.

Total expenditure on Social Security benefits amounted to Lm126.1 million during the first half of 2007, up by Lm6.8 million over the same period last year.

This reflected mainly higher expenditure on contributory benefits.

In turn, the increase in contributory benefits was driven mainly by a Lm4.9 million growth in retirement pensions, which amounted to Lm58.3 million for the first half of 2007. This increase was underpinned by outlay on the two-thirds pension.

Widowhood pensions increased by Lm1.0 million, while invalidity pensions fell marginally during the period under review. In the first six months of 2007, non-contributory benefits amounted to Lm31 million, an increase of Lm0.8 million over the same period in 2006. Within this

category there was an increase of Lm0.6 million in social assistance payments and a decline of Lm0.3 million in children’s allowance payments.

Government expenditure on Social Security benefits for the first half of this year accounted for 51.8 per cent of the annual budget forecast of Lm243.3 million. During the same period in 2006, the government’s outlay amounted to Lm119.3 million, accounting for 51.1 per cent of the total outlay on Social Security benefits in 2006.