China Uses 11% of Fiscal Expenditure for Social Guarantee
According to the news from Ministry of Finance (MOF), China had seen an increase of fiscal expenditure for social guarantee from 59.6 billion yuan (RMB) in 1998 to 436.2 billion yuan (RMB) in 2006, which accounted for 5.52% and 11.05% of the total fiscal expenditure of that year respectively, with an annual growth rate of 28.3% which is apparently higher than that of the total fiscal expenditure fixed by the budget of the same period. In addition, the fiscal expenditure for low-income guarantee and unemployment allowances reached 147.5 billion yuan (RMB) in 2006, which is 11.3 times of that in 1998; while the fiscal expenditure for sanitation fund increased from 41.4 billion yuan (RMB) in 1998 to 132 billion yuan (RMB) in 2006.
The statistics issued by MOF indicate that in recent years, China’s countryside has seen an even faster development of social guarantee system with thanks to the stronger financial support from the government. Specifically speaking, the Central Government increased its fiscal expenditure for the new-type of rural cooperative health care from 400 million yuan (RMB) in 2003 to 11.4 billion yuan (RMB) in 2007; and the fiscal expenditure for rural health care aid was also raised from 300 million yuan (RMB) to 1.32 billion yuan (RMB). Moreover, a special fund of 3 billion yuan (RMB) was assigned by the Central Government to support the construction of the lowest living guarantee system for rural residents.