The Perfection of Financial Subsidies for Urban and Rural Basic Endowment Insurance: Based on Research in Guangdong Province

Abstract

The social security relies on public finance. However, the benefits of urban and rural basic endowment insurance in China have been at a low level since the establishment in 2014. This article explores the possibility of improving pension based on the view of public finance. By analyzing the status and fiscal subsidy policies of urban and rural basic endowment insurance in Guangdong province, the passage found that the fund supported endowment insurance for public finance was not a burden. Then, the ELES was used in the essay to estimate an appropriate level of pension based on the needs of the elderly and funding required could be afforded by public finance. Finally, it proposes some ways to optimize financial subsidies.