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Report on the Work of the Government [Full Text]

(Xinhua)
Updated: 2008-03-19 10:39

We will improve the social safety net. We will follow a policy of expanding the number of people covered, guaranteeing people's basic needs and pursuing multi-level and sustainable development of the system.

First, we will expand the number of people covered by the social security system and improve collection of contributions to insurance funds. The focus of efforts will be on extending coverage to more rural migrant workers in cities, employees in the nonpublic sector of the economy and urban residents without fixed employment. Efforts will be made to provide basic medical insurance for retirees from closed or bankrupt enterprises and employees of enterprises with financial difficulties.

Second, we will push ahead with the reform of the social security system. We will improve the system of basic old-age insurance for enterprise employees, combining contributions from various sources in society with personal employee retirement accounts, and expand the trial of fully funding personal accounts for old-age insurance. In addition, we will accelerate the implementation of overall planning for old-age pensions at the provincial level and work out nationwide rules for transferring social security accounts from one region to another. We will standardize and expand enterprise retirement systems that pay annuities. We will explore ways to reform basic old-age insurance in government-affiliated institutions. We will soon work out an old-age insurance system suitable for rural migrant workers in cities, and encourage local governments to carry out experiments with a rural old-age insurance system. We will accelerate improvement in unemployment insurance, workers' compensation and maternity insurance.

Third, we will finance social security funds in various ways, strengthen their oversight, ensure their security and maintain and increase their value.

Fourth, we will improve the social assistance system. We will focus on improving the systems of basic cost of living allowances for both urban and rural residents and setting up a mechanism for adjusting the level of assistance in line with economic growth and price changes. We will improve the temporary assistance system, vigorously develop social welfare programs and encourage and support the development of charity programs. We will do a good job providing assistance to entitled groups and helping demobilized military personnel return to civilian life. We will improve the work of disaster prevention, reduction and relief. A total of 276.2 billion yuan will be appropriated this year in the central government budget to accelerate development of the social security system, 45.8 billion yuan more than last year. Establishing a sound social safety net for both urban and rural residents to ward off uncertainties for them has a direct impact on economic and social development and is a major task in the effort to build a moderately prosperous society in all respects.

We will promptly establish a system for ensuring housing for people. The general guiding principles for this work are as follows. 1) Taking into consideration the fact that China has a large population and relatively little land available for building housing, we need to foster a scientific and rational model for housing development and home ownership. We will vigorously work to build environmentally friendly buildings that conserve energy and land, increase the supply of small and medium-sized condominiums, and guide people to obtain housing they can afford. 2) We must ensure that the government and the market both play their due roles. The government's role is mainly to formulate plans and policies for housing and ensure that there is an appropriate supply of land, ensure that land is used intensively and oversee land use. Priority will be given to development of housing for low- and middle-income families. Demand for housing among high-income families will be met largely through the market. 3) We need to strengthen regulation and oversight of the real estate market, standardize and maintain order in the market and promote sustained, steady and healthy development of the real estate industry.

The following four measures will be adopted this year:

First, we will improve the system of low-rent housing, accelerate construction of low-rent housing, expand the supply of housing, and step up construction and tighten management of affordable housing to ease the housing difficulties of low-income urban residents. A total of 6.8 billion yuan will be allocated from the central government budget for the low-rent housing program this year, 1.7 billion yuan more than last year, and local governments will also increase funding in this area. In addition, we will work energetically to improve the living conditions of rural migrant workers in cities.

Second, we will increase the supply of low- and medium-price, small and medium-sized condominiums, establish a mechanism for making investments and raising funds in various ways, and help middle-income families meet their housing needs through a variety of channels. We will improve the supply structure of urban land to provide more land for building small and medium-sized condominiums.

Third, we will use a combination of tax, credit and land supply measures and improve the housing accumulation fund system to increase supply of reasonably priced housing, curb demand for high-end housing and prevent overheating in housing prices. Fourth, we will strengthen market oversight and strictly enforce the requirements for market access and the conditions for going out of business for real estate firms. We will investigate attempts to control the land and housing market through hoarding and speculation in land and housing and deal with violations in accordance with the law. In addition, we will improve planning and management of rural housing development and the safety of housing for the rural poor. We must unswervingly promote reform of the housing system and construction of housing for the benefit of the people.

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