Expenditure for social insurance management only increased by 6%

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Expenditure for social insurance management and extension of retirement age are not related to each other

Earlier, on February, 27, 2017, the Prime Minister Nguyen XuanPhuc wrote a request to the Ministry of Labour, Invalids and Social Affairs and Vietnam Social Insurance to research and, report to the Prime Minister on the information mentioned above.

Thus, at the press conference, Mr. Pham Luong Son, Deputy General Director of Vietnam Social Insurance confirmed that there is no information mentioned above.

According to Mr. Pham Luong Son, the SI and the Ministry of Labour, Invalids and Social Affairs are making a draft report to the Prime Minister in accordance with the directions.

Social Insurance as well as the Ministry of Labour, Invalids and Social Affairs has submitted to the Government to submit to the National Assembly Government to consider the extension of retirement age in order to ensure the long-term safety for the pension insurance fund of Social Insurance.As Mr. Son reiterated, costs for SI management, and extension of retirement age are not related to each other

"Some newspapers cited experts’ opinionsto comment that if expenditures for apparatus management increases, affecting the balance of the social insurance fund, Vietnam Social Insurance will be willing to direct dialogue to find common words and ensure the correct information as well as mutual understanding, " Mr. Pham Luong Son said

Concerning some newspaper reports that the expenditure of Social Insurance in 2015 sharply increased to 7,407 billion vnd, up by 75.8% compared to 2014, Mr. Pham Luong Son stated that this information was not accurate, because the estimate of the 2015 expenditure plan approved by the Prime Minister was only 6,560 billionvnd, up by 59% compared to 2014. The increase was mainly to implement someurgent and necessary tasks where funds were not allocated in 2014 and the previous years.

Specifically, the first was expenditure for unemployment insurance propagation, thereby, the participants of unemployment insurance in 2015 reached encouraging and convincing results. The second was expenditure for promotion of administrative reform and electronic transactions, thereby significantly reducing administrative procedures and reducing transaction time to 45 hours. The third wasexpenditure for IT applications at the request of the National Assembly. The fourth was expenditure for direct support to participants of social insurance and health insurance. When the number of participants increase, and the number of beneficiaries also increase, the requirements for costs must increase.

The specific expenditure norm for environmental protection activities VCN- The Ministry of Finance issued Circular No. 02/2017/TT-BTC guiding on expenditure management for environmental protection activities.

"Therefore, the actual expenditure for social insurance management only increased by 6% compared to 2014. The process of making estimates and approving estimates was extremely strict in accordance with economic and effective expenditures. The entire budget under the estimates and assigned by the Prime Minister is to pay for policies and beneficiaries of insurance policies," Pham Luong Son stressed.