Chinese political advisors are appealing for better management
of social security and housing funds in the run-up to the annual
session of the Chinese People's Political Consultative Conference
(CPPCC) National Committee, which will start on March 3.
CPPCC National Committee member Hao Ruyu said the social
security fund should be better managed and used as it is closely
related to people's livelihood.
China's social security system is funded from revenues from
huge, multi-billion yuan insurance funds that provide pensions,
unemployment and medical insurance, worker injury compensation, and
maternity leave.
Hao, vice president of the Capital University of Economics and
Business based in Beijing, suggested the country expand the reform
that replaces social security agencies with local taxation
departments to raise social security funds.
Currently, the reform is trialed in 20 provinces and
municipalities. Hao said it should be expanded to the whole
country.
The social security tax system, currently used in more than 132
countries, can be another alternative for China to better its
social security funds management.
An earlier meeting on clean government held by the State
Council, the country's central government, has called governmental
audit agencies to strengthen the supervision of social security
funds and publicly accumulated housing funds.
China's National Audit Office discovered 7.1 billion yuan
(US$916 million) in illegally used social security funds in 2006.
The funds were either illegally borrowed, used or deposited.
There are also frequent reports of large amounts of publicly
accumulated housing funds misappropriated in China.
CPPCC National Committee member Yao Shouzhuo, a professor at
Hunan University, said the management of housing funds should be
supervised through multiple channels.
(Xinhua News Agency March 2, 2007)