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Strengthening Financial Support From the State Budget to Help Farmers Participate in a Stronger Social Security System


4.3.2. Increase financial support from the State budget to help farmers participate in a stronger social security system.

First, on financial support measures for health insurance. To expand coverage of health insurance, it is necessary to increase the rate of financial support for health insurance participation for near-poor people and expand the scope of financial support for participation for middle-income people. The benefits of health insurance participants are currently greater than those of health insurance participants, and although health care expenditures rank fourth among the main expenditures of farming households, the number of farmers participating in health insurance is currently very small, 28.8% according to survey data. We recommend continuing to expand the scope of participation in health insurance participation, so that by 2020 it can cover 100% of farmers.

To achieve this goal, the issue of financial support for participation is a decisive factor at present. According to the above analysis, if the State provides financial support, the ability of farmers to participate in the health insurance scheme will increase, creating conditions for the implementation of the universal health insurance policy.

The author's survey results show that although people are aware of the benefits of participating in the unemployment insurance system, due to many economic difficulties, most of the unemployment insurance beneficiaries interviewed want the State to support most of the participation costs, and they will cover the rest themselves.

Table 4.7: People's wishes about the level of contribution and receiving support from the State to participate in the social insurance system



% of people's contribution

% State support

Social insurance

Health Insurance

Social insurance

Health Insurance

Under 40%

53.64

48.97

12.87

20.00

From 40 - 60%

38.41

36.55

36.84

31.35

From 60 - 80%

5.96

12.41

30.99

31.15

>80%

1.99

2.07

19.30

17.50

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Strengthening Financial Support From the State Budget to Help Farmers Participate in a Stronger Social Security System

Source: Results of the author's investigation and survey

From there, the support must also be calculated according to the subjects. The author believes that for the subjects belonging to rich and well-off households, the State needs to increase propaganda and mobilization so that they can participate in the Unemployment Insurance. The support should be for the subjects near the poverty line.


poor and in the coming years should be expanded to include middle-income earners. For near-poor people, it is necessary to increase the level of financial support for participation.

According to the author, the support level for health insurance is about 75-80%.

Particularly for near-poor households who are ethnic minorities, it is necessary to apply the State policy of purchasing health insurance like poor households.

In addition, in the coming years, financial support should be expanded for middle-income earners participating in health insurance.

Based on that, the author believes that, in the current conditions of our country, financial support for farmers to participate in social insurance according to the contribution-benefit principle focuses on supporting farmers to buy health insurance. As the improvement direction mentioned above, the author proposes that the State support for near-poor farmers from 75-80% of the participation fee; support for farmers with average income from 50-60% of the participation fee.

This support is implemented from two sources: the central state budget and the local state budget, so that the total support for participants is about 60% - 80% of the participation cost depending on the average and near-poor subjects. Specifically as Table 4.8 below:

Table 4.8: Proposed level of financial support for farmers to participate in health insurance

2013-2015



Total cost (%)

In there

State Support

People's contribution

Near poor households are ethnic minorities

100.00

100.00

0.00

Near poor household

100.00

75-80

20-25

Average household

100.00

50-60

40-50

Source: Based on author's investigation calculations.


Second, the State has measures to increase revenue and adjust the budget revenue and expenditure structure for social security in general and for farmers in particular.

With the expansion of coverage and improvement of the level of social assistance as proposed above, the author estimates that by 2015, 2,800,000 people will receive assistance with an assistance level of 390,000 VND/person/month and a total assistance budget of 13,104 billion VND/year, equal to 1.12% of the state budget expenditure.


By 2020, the number of people receiving assistance is expected to be 5,000,000, assuming the increased assistance level is 680,000 VND/person/month and the total assistance budget is 40,800 billion VND/year, equal to 2.45% of the state budget expenditure (see Table 4.9).

Table 4.9: Forecast of funding needs for social security according to the objectives of Resolution 15-NQ/TW



2010

Expected 2015

Expected 2020

1. About the number of people assisted




1.1. Total population ( thousand people)

86,932

93,057

98,604

1.2. Number of people receiving social assistance ( thousand people)

1,440

2,800

5,000

1.3. Ratio of beneficiaries to population ( % )

1.65

3.0

5.0

2. About financial assistance




2.1. Average income of society ( thousand VND/person/month)

1,387

1,950

2,722

2.2. Support level compared to average social income ( % )

12.97

20.0

25.0

2.3 Average aid amount per person ( thousand VND/month)

180

390

680

2.4. Total aid funding ( billion VND)

3,575

13,104

40,800

3. State budget expenditure ( trillion VND)

661.37

1,168.40

1,659.72

4. Ratio of aid amount to total state budget expenditure (%)

0.54

1.12

2.45

Source: Author's own calculation based on data from the General Statistics Office and the Department of Social Protection.


To have more financial resources, ensure increased state budget revenue to meet spending needs in the coming time, on the one hand, the State needs to readjust the structure of state budget expenditure for social security; on the other hand, it is necessary to improve tax revenue, especially focusing on revenue from personal income tax. Because in reality, workers working in the formal sector in general, and the administrative sector in particular, all have incomes that ensure their lives many times greater than the minimum wage. However, many of them do not have to pay income tax or if they do, the amount paid is very small compared to their income. Therefore, it is time to reform the wage policy, so that wages become the main source of income and reflect relatively accurately the income of wage earners, only then will state budget revenue from income tax be improved, and the State have more funds to implement the set goals.


4.3.3. Research on innovation in social security management organization based on the principle of contribution

- benefits for farmers

The implementation of social insurance for farmers in recent years shows that the organization of social insurance according to the principle of voluntary contribution and benefit in general, and for farmers in particular, still has many shortcomings, has not been able to convey policies on social insurance and health insurance to the people, has not reached the farmers, and has not ensured that farmers can participate in the contribution and benefit system in the most convenient way.

Therefore, to enhance the capacity of the management system in implementing social insurance for farmers, the author recommends that the State should soon study and innovate the organization and management of social insurance according to the principle of voluntary contribution and benefit. One possible option is that the State separates the organization of the social insurance collection and disbursement department in general, and for farmers in particular, and assigns it to another unit with an organization from the central to the commune and ward levels to implement. Only then can we propagate, mobilize, and organize collection and disbursement closer to farmers. However, this is a big problem that needs further research.

Organize social security information work; innovate income statistics to provide information for social security management in general, and for farmers in particular.

4.2.4. Strengthen training of staff working in social security

To improve the capacity of the team working on social security for farmers in the coming time, it is necessary to strengthen the team of managers and staff with the capacity to operate and implement social security programs for farmers in large rural areas and non-concentrated populations that have been identified. Strengthen consultation and participation of local people in the management and planning of national target programs. Ensure on-site management human resources, especially the skills and capacity of commune and ward officials to participate in programs and projects implementing social security for farmers. To do so, it is necessary to strengthen the training of the team, ensure the quantity, ensure vocational training, improve the professional qualifications and professional ethics of the team of staff working on social security in general, and social security for farmers in particular.

To do this well, it is necessary to develop a plan to select young people with good qualities, enthusiasm, and professional skills and orient them to study at universities related to social security. If necessary, the State can and should


must invest funds for training. In addition, the process of improving the quality of the staff needs to be through the gradual replacement of weak staff and civil servants with young, enthusiastic staff and civil servants who are good at professional expertise, have knowledge of social security, and understand the lives of farmers in the area they are approaching. There must be a specific roadmap from 5 to 10 years. In this process, it is necessary to regularly focus on retraining and fostering to improve the qualifications, update knowledge, and socio-economic situation for the current staff working in social security, helping them to be able to complete their tasks well.

At the same time, in order for social security workers in general and farmers in particular to concentrate on their jobs, the State needs to have appropriate remuneration policies, first of all, salaries and incomes to ensure the lives of social security workers.

4.2.5. Raising awareness among farmers about the benefits of participating in social security programs

In a country where more than 60% of the population lives in rural areas and works in agriculture, social security for farmers plays an important role in ensuring the sustainable development of the country's economy. Social security workers, therefore, must not only highlight the State's support in helping people actively participate in this system, but also communicate the benefits of actively participating in the social security system for farmers.

To achieve this, in addition to using the media to educate farmers about self-security, the spirit of striving to improve, the spirit of voluntary contribution and accumulation to ensure social security for themselves and their families, the State should also perfect the multi-dimensional information channel system to receive and respond to farmers' opinions on issues related to laws, policies as well as the organization and implementation of these programs. These activities, on the one hand, affirm the State in strengthening its responsibility in building a social security system for farmers, supporting farmers to proactively participate in the proactive social security system, but at the same time create a social environment for people to fight against the mentality of waiting and relying on support from the State.


CHAPTER 4 SUMMARY

Based on the analysis of the socio-economic development context of the country in general, the income and living conditions of farmers in particular, this chapter of the thesis has analyzed the issues raised in perfecting the social security system for Vietnamese farmers. The author has pointed out the pressing issues in building and perfecting the social security system for farmers in our country in the coming years in two aspects: 1) How to expand the coverage and enhance the impact of social security according to the contribution-benefit principle for farmers; 2) How to expand and enhance the impact of the social security system according to the non-contribution principle.

On that basis, the author has proposed directions to strengthen the role of the state in social security for farmers in the coming years. The author believes that the expansion of coverage of social insurance should focus on the well-off and rich; at the same time, some benefits should be added to social insurance to be equal to social insurance.

For health insurance, the author recommends that for the average and near-poor, the State at the central and local levels should support 60 - 80% of the contribution fee.

For the social assistance system, it is necessary to expand the scope and increase the level of social assistance. In the social assistance subsidy, it is necessary to focus on subsidies for households belonging to vulnerable groups.

Finally, the Thesis proposes a system of solutions to improve the legal environment, mechanisms, policies, organizations and management team to build and improve the social security system for farmers in the coming years.


CONCLUDE


As a country moving to develop a market economy in a condition where rural areas still account for a large proportion like ours, the construction of a social security system is very important to help people prevent, minimize and overcome risks in life. Realizing that, in recent years of innovation, our State has paid attention to the construction and gradual improvement of the social security system, including social security for farmers. However, due to limited economic conditions, organization and awareness, the development of a social security system for farmers is still facing many difficulties, the coverage is still low, and the impact is not high. There are many reasons for this result, including the issue of the role of the State. Therefore, the thesis on the role of the State in social security for farmers in Vietnam is an urgent issue in both theory and practice.

On the basis of affirming the role of the State in social security for farmers according to the principle of contribution - benefit (unemployment insurance and unemployment insurance) and social security is not based on people's contributions, but on the support of the State and the community (social security and unemployment insurance), along with the coordination of social security policies with other social policies, the author conducted a survey and assessed the current status of the State's role in social security for farmers in the three provinces of Thanh Hoa, Nghe An and Ha Tinh.

The author pointed out that, up to now, the social security system for farmers has just been formed, but it is not yet synchronous, the coverage of social insurance, health insurance and social assistance is still low, the impact of social insurance is low, ensuring social security for farmers is still very difficult. That requires strengthening the role of the State in social security for farmers in the coming years.

The author believes that, for the Unemployment Insurance, to expand the coverage, it is necessary to strengthen the organization and implementation to mobilize the rich and well-off in rural areas to participate; at the same time, add some benefits to the Unemployment Insurance to be equal to the Unemployment Insurance. For the Social Assistance system, it is necessary to expand the scope and increase the level of Social Assistance subsidies, at least equal to the current poverty line; it is necessary to focus on subsidies for households in vulnerable groups.


Finally, to strengthen the role of the State in social security for farmers in the coming years, the author recommends a system of solutions from job creation, income increase, increased support from the State budget for both the contributory and non-contributory systems, perfecting the management organization, training the staff working in social security and raising awareness of social security for farmers.

The four key issues the author recommends are:

1) To develop social insurance, on the one hand, the State needs to change the regulations on the basis of social insurance contributions, it should not be based on the minimum wage but on the average regional income; on the other hand, it is necessary to increase the benefit regime to ensure equality with social insurance.

2) To move towards universal health insurance, the State needs to support 60-80% of the contribution fee for middle-income and near-poor farmers participating in voluntary health insurance.

3) Increase the coverage of social assistance from 1.65% of the population in 2010 to 3% in 2015 and 5% in 2020; increase the budget for social assistance from the state budget from 0.54% in 2010 to 1.12% in 2015 and 2.45% in 2020. In the social assistance program, it is necessary to focus on subsidies for vulnerable farming households.

4) Regarding the system organization, the State needs to study and separate the social insurance monitoring department for farmers and informal sector workers in general into a unified system from the central to local levels./.

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