Social security fund aims for 9.9pc rise in income
Although expenditure is expected to climb at a faster rate, NSSF is in line for a healthy surplus
The National Social Security Fund (NSSF), the central government's reserve for the provision of a range of social welfare services, is budgeting for a 9.9 per cent increase in its income.
This is the first time the Ministry of Finance has announced the annual budget for the fund since it started collecting nationwide budget information on a trial basis three years ago, the ministry said on its website last night.
The NSSF is budgeted to have a total income of 3.28 trillion yuan (HK$4.14 trillion) this year, up 9.9 per cent. This includes insurance fee income, targeted at 2.47 trillion yuan, and government financial subsidies at 718 billion yuan. Expenditure is expected to grow 16.8 per cent to 2.79 trillion yuan.
Overall, the surplus is estimated at 491.5 billion yuan. This will bring the fund's balance to 4.09 trillion yuan at the end of this year.
The NSSF, set up in 2000, serves as a strategic reserve fund for the government to support future social security spending on pensions and unemployment, medical and child birth insurance and workers' injury benefits. It has also been entrusted with managing certain government funds for several provinces.
Started with 20 billion yuan from the Ministry of Finance, the NSSF has since grown on the back of contributions from fiscal appropriations, transfers of shares from state-owned enterprises on their listings, lottery sales revenues and returns on its own investments.
The basic pension fund for employees is budgeted to have income of 1.88 trillion yuan this year, up 8.2 per cent from last year. The unemployment insurance fund is forecast to have income of 114.5 billion yuan, a rise of 9.5 per cent.
Income for the city workers' medical insurance fund is budgeted at 618.9 billion yuan, up 11.2 per cent, while income for the workers' injury insurance fund is targeted at 52.2 billion yuan, an increase of 10.4 per cent. The child birth insurance fund is budgeted to have income of 32.1 billion yuan, a rise of 13.6 per cent.
Overall resident pension fund income is expected to rise 9.4 per cent to 209.8 billion yuan. The resident basic medical insurance fund's income is budgeted at 376.3 billion yuan, up 17 per cent.