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SCIO press conference on fiscal revenue and expenditure in 2023

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Thecover.cn:

Issues regarding the sustainability of the pension system and the timely and full payment of pensions are of concern to the public, given China's rapidly aging population. How would you respond to the public's concern? Thank you.

Hou Junming:

Thank you for your question. The issue is of great concern to everyone. It is important to ensure people's access to elderly care and improve their well-being as China's population ages rapidly. Pension payments potentially concern the interests and well-being of every Chinese citizen and their families. In recent years, finance departments at all levels have fulfilled their responsibilities to ensure pensions are paid on time and in full. Efforts have been made in the following three areas:

The first is to increase government subsidies. In 2023, the central government allocated about 1 trillion yuan in fiscal subsidies for basic pension insurance, which was weighted towards the central and western regions and old industrial bases. Local governments have proactively fulfilled their responsibilities in this regard to ensure that basic pensions are paid on time and in full.

The second aspect involves the nationwide pooling system for pension funds. Initiated in 2022, as planned by the central authorities, this system enables pension funds to be properly transferred from regions with a surplus to those facing deficits nationwide. In 2023, a total of 271.6 billion yuan of pension funds were transferred nationwide, effectively addressing the problem of pension fund surpluses in some regions and payment difficulties in others.

The third aspect concerns the management of pension funds. We have worked with relevant departments to regulate fund collection and distribution, ensuring that the policies for financing and receiving pension benefits are fairer and more reasonable. This aims to make the old-age pension system more equitable and sustainable.

Remarkable improvements have been witnessed in terms of pension fund collection and distribution thanks to the aforementioned efforts in recent years. By the end of 2023, the balance of China's pension insurance funds for urban workers stood at nearly 6 trillion yuan, ensuring timely and full pension payments.

Moreover, according to decisions and plans made by the CPC Central Committee and the State Council, we have allocated special funds to support the program to improve home- and community-based basic care services for senior citizens, as well as the program to provide concentrated care services for elderly people who cannot perform essential self-care and who are economically disadvantaged. We have introduced a series of preferential tax and fee policies to support the development of the elderly care service sector and the "silver economy" (economic activities that offer products and services to seniors). By doing so, elderly people will not only have the financial support they rely on to support them through old age but also access to affordable and high-quality care services.

In 2024, our efforts will focus on two priorities. First, the central government will allocate more financial subsidies and ensure the implementation of the nationwide pooling system for pension funds. We will intensify efforts to improve relevant systems and mechanisms to protect the funds people rely on to support them through old age. Next, we will step up support for elderly care services and improve the networks for institution, community and at-home elderly care services. We will promote the coordinated development of elderly care programs and services and improve the quality and efficiency of elderly care services. Thank you.

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