Posts tagged ‘social security’

12/07/2015

13 Million Guangdong Migrants Could Gain Permanent Residence By 2020 – China Real Time Report – WSJ

Faced with a persistent influx of rural workers, China’s most populous province plans to allow more migrant residents to settle permanently in its cities, in its latest effort to ease decades-old curbs on rural-urban migration.

Under new guidelines published this week, Guangdong authorities aim to grant local household registration to roughly 13 million migrant workers by 2020, allowing them to access public services—spanning housing, health-care, social security and education—that are typically reserved for urban residents.

Guangdong has often taken the lead in efforts to liberalize the hukou system, a national household-registration regime that curbs rural-urban migration by tying benefits like health care and pensions to a person’s place of birth. Experts say the system forces many rural migrants to live as second-class citizens in urban areas, aggravating social inequality while fueling tensions between locals and outsiders.

Hukou reforms are a pressing matter for Guangdong, a southern Chinese manufacturing hub that hosts the country’s largest transient population. Among its roughly 110 million residents, more than 24 million are migrants from other regions, while another 10.6 million have relocated within the province.

“Reforming the household-registration system will speed up our province’s urbanization process, and facilitate the coordinated development of the Pearl River Delta region,” Peng Hui, deputy director-general of Guangdong’s public security department, told a news briefing this week.

As part of the reforms, provincial officials will aim to “equalize” the provision of public services and ensure “balanced” economic development between rural and urban areas, according to the new guidelines.

China has used the hukou system since the 1950s to keep people from moving to the cities and forming the sort of slums that plague other developing nations. In recent decades, however, rural migrants have increasingly bucked the system to seek better opportunities in urban areas, without approval to live there.

Beijing, for its part, has since changed tack and pushed to urbanize its population of nearly 1.4 billion people, of which about 45% still in live in rural areas. But experts say the government must speed up its dismantling of the hukou system, warning that social tensions could fester and even boil over in the coming decade as China’s “floating population” of more than 250 million continues to expand.

Last year, Beijing pledged some changes to the hukou system, with restrictions to be lifted first in small towns. More stringent requirements will remain on those who want to live in larger cities, which are generally more attractive to migrants.

 

Guangdong’s plan follows a similar approach. Provincial officials say they plan to “fully liberalize” settlement rules in small, county-level cities and so-called “administratively designated towns,” where migrants with legal and stable places of residence will be allowed to apply for permanent residency.

via 13 Million Guangdong Migrants Could Gain Permanent Residence By 2020 – China Real Time Report – WSJ.

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28/02/2015

What the Budget Means for Regular Indians – India Real Time – WSJ

The Modi government’s budget offered some sops for middle-class tax payers and a series of steps aimed at boosting social security for the country’s poor.

Tax Breaks on Health Insurance, Travel: Individuals will be allowed to deduct up to 25,000 rupees ($400) annually in health-insurance premiums from their taxes. That is an increase from the current 15,000-rupee deduction. For people 60 years or older, the deduction will be 30,000 rupees.

Mr. Jaitley also proposed increasing the amount of transportation expenses individuals can deduct to 1,600 rupees a month, up from 800 rupees a month now.

Pension Deduction: Individuals can now claim an additional tax deduction of up to 50,000 rupees ($800) if they put the money in the government’s New Pension Scheme. “This will enable India to become a pensioned society instead of a pensionless society,” said Mr. Jaitley.

Social Security programs: In a bid to provide a social safety net, Mr. Jaitley said the state will provide accidental death insurance of 200,000 rupees for a premium of just one rupee a month. State insurers will also offer policies covering natural and accidental death for 330 rupees a year.

Though available to all, the relatively small size of the insurance cover implies these will likely be used mostly by the poor.

The government will also encourage individuals to set up pension accounts under a new program. For individuals who open such an account by Dec. 31, the government will match individual contributions up to 1,000 rupees a year, for five years.

Tax-Free bonds:  Mr. Jaitley plans to allow government agencies and others to issue tax-free infrastructure bonds to fund roads, railways and irrigation. Details weren’t disclosed but typically interest on such bonds is tax free.

Service Tax: Now for the bad news: your restaurant and phone bills will soon go up, because the government will raise the service tax to 14% from 12.4%. Individuals indirectly pay this tax on a wide range of services, including on insurance premiums, hotel bills and electricity bills.

Gold Bonds: Since Indians won’t give up their love for gold, Mr. Jaitley tried to come up with ways to at least get it out of people’s homes and into banks. He introduced a plan that he said would make it easier for people keep gold in a bank, earn interest on it and borrow against it.

Mr. Jaitley also proposed a “Sovereign Gold Bond” that would act as an alternate to owning physical gold. These bonds would have a fixed rate of interest and “be redeemable in cash in terms of the face value of the gold,” he said.

Unaccounted-for Money: Mr. Jaitley said the government would introduce more stringent requirements for people to declare assets held overseas and make it harder for people to buy real-estate with cash in an effort to tax evasion.

via What the Budget Means for Regular Indians – India Real Time – WSJ.

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