Xu Qiang and Zhang Kaiyun
(College of Public Management, South China Agricultural University)
Abstract: The State Council issued a guidance to establish a new rural social pension insurance system in 2009, the system increased government financial investment and achieved better construction results, but the financial investment burden-sharing mechanism is not perfect in the system: Firstly, the responsibility between central and local finance divided unreasonable; Secondly, there is no uniform standards of the finance responsibility division of all levels government; Thirdly, the local government faced greater financial hard constraints.Based on the theory of fiscal federalism, on the status of financial investment burden-sharing and problem analysis, we proposed policy advice and recommendations to optimize the system: Firstly, the central government's financial investment should primarily reflect the apportion of basic pension and financial transfer payment.Secondly, local governments fiscal responsibility should consider two issues: the overall investment volume and the sharing mechanism of local governments at all levels; Thirdly, we should ease the financial difficulties of local governments through fiscal transfer payment system.
Key Words: New Rural Social Pension Insurance System; System Optimization; Financial Investment; Shared Responsibility
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