REVIEW
of
FINANCE -
Apr. 2018
11
STATE BUDGETMECHANISM
TO SUPPORT SOCIAL SECURITY
PHAM VAN TRUONG
– Director of Administrative Finance Department (Ministry of Finance)*
The current system of social security of Vietnam has a wider scope in relation to different fields of life.
Despite great difficulties and impacts of state budget revenue and expenditure, social security has
been in top priority to be ensured with stability by the Party and the State. Therefore, the state budget
arrangement to support social security has been conducted in combination with other public service
spendings to ensure social healthcare, culture and communication, education and training activities…
Keywords:
Social security, state budget, public administration, education and training, vocational training, healthcare
Received: January 4
th
, 2018
Revised: January 18
th
, 2018
Accepted for publication: January 24
th
, 2018
The efficiency of State budget
to support social security system
In recent years, despite of the great difficulities
of economy and state buget expenditure social
security policies have been in top priority set by
the National Party and the State to ensure the
living of the communities, especially the invalid
and vulnerable people. The finance funded for
principal policies are following:
Policies on creating jobs and vocational training
By present, the National Party and the State
have spent VND 1,414.15 billion in the National
Target Program on vocational training, creating
jobs and working safety. Loans made to solve the
unemployment of poor people and other policy
beneficiaries at the Vietnam Bank for Social
Policies values at VND 5,138 billion; Lending
program for working abroad beneficiaries is VND
218,2 billion; Loans for poor workers to work
abroad (according to the Decision No. 71/2009/
QD-TTg); Project to support the poor districts
to improve labor export activities and to reduce
poverty for the period of 2009-2020 is VND 9,6
billion...
Poverty reduction policy
In 2017, the budget for implementation of
the National Targeted Program for Sustainable
Poverty Reduction is VND 7,231 billion (VND
2,231 billion for non-productive work and VND
5,000 billion for investment). The central budget
has been allocated in the local budget balance to
implement the electricity supporting policy for the
poor, social policy beneficiaries anddirect support
to the poor households of the ethnic minorities.
The Decision No. 28/2014/QD-TTg dated January
7
th
, 2014 of the Prime Minister stipulating the
structure of electricity retail tariffs and the
Decision No. 102/2009/QD-TTg dated August
7
th
, 2009 of the Prime Minister on the policy of
direct support for ethnic minority people in poor
households in disadvantaged areas. In addition,
during the budget implementation process in
2017, the central budget has supplemented the
local budget to implement this policy of VND
13,004 billion.
Compensation for interest rate difference and
management fee with VND 2,010 billion has
been allocated from the state budget to offset
the interest rate difference and management
fee to the Vietnam Bank for Social Policies
so as to implement the credit policy for poor
households and other policy beneficiaries under
the Government’s Decree No. 78/2002/ND-CP of
October 4
th
, 2002. By November 30
th
2017, loan
program lending to poor households was VND
10.602 billion; The program for loans for new
households escaping from poverty is VND 9,886
billion; loans made for near-poor households is
VND 8,727 billion.
Social insurance and unemployment insurance
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