On July 10, Premier Li Keqiang of the State Council chaired the executive meeting of the State Council and dispatched a reassuring pill. The meeting demanded that the work of reducing the social security premium rate be done well, and decided to promote the transfer of part of state-owned capital to enrich the social security fund in an all-round way. The meeting pointed out that in the first half of the year, the effect of the policy of lowering the social insurance premium rate showed that the basic pension insurance, unemployment insurance and industrial injury insurance premiums for employees of enterprises had decreased by more than 128 billion yuan.
In addition, the meeting also identified further measures to stabilize foreign trade in order to expand openness, boost steady growth and employment, and deploy the central budget implementation and other financial revenue and expenditure audits to identify problems and rectify them.
Ensure that pensions are paid in full and on time
The executive meeting of the State Council pointed out that at present, Chinas social security funds are running smoothly and can ensure payment in full and on time. In the first half of the year, the effect of the policy of reducing social insurance premium rate was obvious. The contribution of basic old-age insurance, unemployment insurance and industrial injury insurance for employees in enterprises decreased by more than 128 billion yuan. The meeting demanded that the next step should focus on the requirement of ensuring the reduction of social security premium rate and the timely and full payment of basic pensions, deepen enterprisesunderstanding of the implementation of policies, promptly study and solve new problems, and ensure that policies fall to the ground without discount.
Reporters noted that before that, pension insurance companies in different parts of the contribution rate is different. For example, 11 provinces such as Hebei, Shanxi, Liaoning, Jilin and Heilongjiang are 20%, while 16 provinces such as Beijing, Tianjin, Inner Mongolia, Guizhou and Jiangsu are 19%.
The current national regular meeting calls for a stable mode of payment. On the premise that the proportion of employeesbasic endowment insurance units contributions is not higher than 16%, there will be no policy adjustment in principle this year for the problems of inconsistent provincial rates and payment base standards in individual provinces. All localities should earnestly assume the main responsibility of the basic pension payment and ensure that one household does not settle down. Provincial overall planning should be steadily promoted.
Zheng Chunrong, a professor at the School of Public Economy and Management of Shanghai University of Finance and Economics, told Daily Economic News that the focus of this years reform is to reduce tariffs. There may be problems such as high or low tariffs and inconsistent base of payment in some provinces. For example, according to the average social wage of each city as the base of payment, rather than the average wage of the whole province, these problems belong to the incomplete overall planning at the provincial level, and can be reformed in this direction in the future.
In order to enhance the sustainability of social security funds and further consolidate the foundation of the old-age social security system, the meeting also decided to comprehensively promote the transfer of 10% state-owned shares of large and medium-sized state-owned enterprises and financial institutions controlled by the central and local governments to social security foundations and local relevant undertakers, and to act as financial investors this year. Enjoy the right to benefit and other rights in accordance with the provisions.
Resolutely put an end to arbitrary spending by government departments
The executive meeting of the State Council pointed out that the results of the central budget execution and other financial revenue and expenditure audits in 2018 had been published recently.
Next step, we should do a good job of rectification. When problems are found in auditing, all departments in different places should be seated on a number and rectify them in place on time and in accordance with regulations. The results of the rectification will be reported to the State Council before the end of October and made public after reporting to the Standing Committee of the National Peoples Congress. Second, we should strengthen transparency and rigidity of budget, standardize budget execution from the institutional mechanism, comprehensively strengthen performance management, and resolutely eliminate capricious spending. Third, in accordance with the positive fiscal policy orientation, while adhering to the governments tight days, efforts should be made to ensure development and peoples livelihood in urgent need, especially to ensure that measures such as tax reduction and fee reduction are in place.
Li Ying, project director and assistant researcher of the China Development and Research Foundation, believes that over-tightening is not only the result of the current situation, but also the result of the governments initiative. Governments at all levels should deepen their understanding of over-tightening, continue to reduce general expenditure and save money, and at the same time, improve financial transparency and strengthen external supervision to control it. The administrative cost of government system.