The Effect Research Of Gansu New Rural Social Pension Insurance Financial Subsidies

The pension problem in the countryside of China is especially serious,with the fast speed and higher degree than it in the city,but for a long time,the construction of rural social pension insurance system has been slow.The original rural social pension insurance have only single fund-raising mechanism and low fund yields,which discouraged the farmers insured.Thus,there were a lot of problems when the system came into the late stage,which nearly led itself to stagnation.New rural social pension insurance system that absorbs the experience of the former,improved the financing mechanisms and subside the basic pension and payment for farmers through fiscal financing,then greatly increasing the farmers' enthusiasm and completing coverage 8 years earlier than planned.What kind of positive effect the subsidy produce,and whether the subsidy mechanism of new rural social old-age insurance system needs to be further improved is worth studying.Gansu province is located in the western of China with lagging economic development and relatively few government revenues.However,it pioneers national wide with new rural social pension insurance system.Pension insurance itself has been at the forefront in China.We can discover issues of the system of Gansu province and put forward practicable suggestions by analysing system health and observing the effect itself,which has important implications for promoting sustainable development and playing a positive effect of the system.This paper summarizes the movement condition of financial subsidy mechanism of new rural social pension insurance in Gansu Province since it was piloted in December 2009,and measures the amount of financial subsidy and the subsidies of basic pension and payment of all pilot counties of Gansu Province over the years,and analyses the financial burden level of the central and local government for financial subsidies of new rural social old-age insurance.Then on this basis, this paper uses correlation analysis,DID and calculation method to analyse what positive effect the financial subsidies of rural social old-age insurance system may produce in three major areas respectively,namely provincial level,district,county or city level,and individual farmers level.The results show that this financial subsidies can produce some positive effect at all the three levels under the current condition of financial subsidy mechanism and the financial burden level.New rural social pension insurance financial subsidies and agriculture GDP,consumption of rural residents,the amount of deposits increased annualy are positively related,which means that financial subsidies can improve thelevel of net income and consumption per farmer in pilot areas to a remarkable extent.The pension level of farmers raises obviously after increasing subsidies of the basic pension and the payment.However,it is not suggested that the subsidy mechanism and level is perfect.Finally,according to the problems found in the study,this paper puts forward specific advice of improving the subsidy mechanism and raising the level of subsidies,so as to make the positive effect of rural social pension insurance system more significant in the future system operation.