The Finance Ministry has released its 2014 budget for the national social security fund and says the fund is expected to have a 508.6 billion yuan balance. The government subsidizes more than 820 billion yuan, mostly paid into basic pensions for retired company employees, and residents’ basic medical care.
The budget for the national social security fund expects 3.8 trillion yuan in income this year. That’s up 9% from 2013. Payouts are expected to be around 3.2 trillion yuan, up nearly 14 percent from last year. Government subsidies have played a major role in sustaining social security payments.
"Now as an ageing population becomes a major issue in China, and farmers are added to the social security system, pressure on government subsidies is getting heavier." Liu Shangxi, Deputy Director of Research Inst. for Fiscal Science of MOF said,
Experts say it would be harder and harder to carry on the operation of the social security fund without the government stepping in.
"Government has responsibilities to fill in the gap of basic social financing. But it has to consider government’s financial ability." Liu Shangxi said.
Basic pensions were paid without government subsidies in 2012. However, money became tight in 2013 and the fund would have had a 96 billion yuan deficit without government subsidies.
The budget for the national social security fund expects 3.8 trillion yuan in income this year. That’s up 9% from 2013. Payouts are expected to be around 3.2 trillion yuan, up nearly 14 percent from last year. Government subsidies have played a major role in sustaining social security payments.
"Now as an ageing population becomes a major issue in China, and farmers are added to the social security system, pressure on government subsidies is getting heavier." Liu Shangxi, Deputy Director of Research Inst. for Fiscal Science of MOF said,
Experts say it would be harder and harder to carry on the operation of the social security fund without the government stepping in.
"Government has responsibilities to fill in the gap of basic social financing. But it has to consider government’s financial ability." Liu Shangxi said.
Basic pensions were paid without government subsidies in 2012. However, money became tight in 2013 and the fund would have had a 96 billion yuan deficit without government subsidies.
Source: CCTV
