The Research Of China’s Social Insurance Funds Budget Management

The social insurance funds budget management is the core mechanism of the long term stability of social security system and it is also the significant tool and means of fiscal management. The social insurance funds budget of our state, with its’expansion of connotation and extension of audit, has developed from the monomial insurance covering the enterprise workers solely into the multinomial types covering all the civics. Given to the importance of the social insurance funds budget, the newly revised The Budget Law of the People’s Republic of China in 2014 has formally brought it under the government budget system. The thesis systematically investigates the social insurance funds budget management and it includes the following content.The theory of public goods and the theory of public choice are the theoretical basis of budgeting. The social insurance funds budget has the properties of public goods and its club features; however, it does not meet the excludability of public goods, therefore it belongs to the quasi-public goods. The incremental budget theory and the zero-base budget theory are the methodology of the social insurance funds budgeting.The main routes for connection between the social insurance funds budget and the government’s other budgets are as the followings. Firstly, the government should define clearly the effects, functions and the scope of the revenues and expenditures of the four biggest budgets. Secondly, the government should produce the implementation details of strategic planning and overall coordination of the four biggest budgets. Lastly, the government should, according to legal procedure, close the budget gap of insurance funds covering the pension, unemployment insurance, medicare, work injury and maternity insurance, from other budgets, namely, the general public budget, state-owned capital operation budget and the government-managed funds budget.Currently, there are still some problems in China’social insurance funds budget management, for instance, the lag theory, the non-standardness of laws and regulations, the obstacles of the system, a lack of solid foundation for the budgeting, the loss of assessment for performance, the low return of fund investment and the weakness of information construction.By learning experience from Britain, USA, Japan and Singapore, the government should set up the social insurance budget and include it into the state budget management and implement special project for it. In maintaining the sustainability, the government should establish self-balance mechanisms of the social insurance budget and conduct the medium to long-term actuaries. In the wages and costs, the government should gradually enlarge the range of social insurance budget and take other measures as to raise the age qualification for the pension, to introduce the individuals’account and to let the third party to pay for the medical insurance fund.The reform of the social insurance budget should be in conformity with China’s budget law and with the progress of social security system reform so as to achieve the precise target. It must adhere to the principle of fairness, efficiency, independence and take three-steps strategy. The first step, to bring forward the framework of social insurance budget by the year 2015 to 2020; secondly, to form an orderly combined social insurance budget system by 2020 to 2025; thirdly, to complete the social insurance budget composed of social insurance, social welfare and social almsgiving.The social insurance founds budgeting should persist the principle of according to law compliance, planning overall, earmarking a fund for its specified purpose only, linking organically, and balancing payments. It should also operate with levels in planning and with social insurance programs. Meanwhile, apart from setting up the basic indicators as revenue, expenditure and balance, it should standardize the setting method of correction and reasonably calculate the compounded growth rate of each indicator. In addition, the budget indexes of the new personals’pension of retirees from private and public sectors is supposed to be set by combining mutual assistance programs with personal accounts. The social insurance accounting should take pension, medicare, work injury, unemployment insurance, and maternity insurance as the mainstay; and it should account and supervise continuously and entirely the income, spending, income and fund application by applying double entry system. Among them the individual accounts could adopt the accrual method as the base of accounting computation.In order to strengthen the social insurance funds budget management it is necessary to do intense researches into its interrelation with the politics, economics, management science, law and the theory of government theory etc. Furthermore, when the time comes the Opinions of the State Council on the Implementation of the social Insurance should be abolished and the new documents of the State Council or the implementing regulations of Budget Law should be formulated. The expectations are to enhance the coordination and the performance of the social insurance funds management and to improve its information system construction and its the medium to long-term actuaries level.