The 2011 Social Security trustees’ report which was issued on Friday has emphasized on the importance of cash flow in maintaining Social Security. The report has revealed surprising news that Social Security would exhaust its trust fund in 2036, a year earlier than last year’s report projected.

Republicans took the news as an alarm while the democrats said that it will not affect the cash flow or social security because 2036 is a long time from now.

The report has also claimed that Social Security now projects cash flow deficits as far as the eye can see. It’s the first time that something related to this has happened since Social Security taxes were raised and growth in benefits was reduced back in the early 1980s.

The report has recommended that the problems linked with cash flows could be solved by properly managing the financial network.

Trust fund is a concept which can be deal by diverting general revenues into the system or by simply giving Social Security more Treasury securities.

The report doesn’t signify that Social security is in crisis but more efforts should be made for properly managing the funds.