Ministry of labour invalids and social affairs


Expanding the coverage and level of subsidies for children, caregivers of children, single parent, women in maternity



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2.4. Expanding the coverage and level of subsidies for children, caregivers of children, single parent, women in maternity:

a) Period of 2016-2020

* Beneficiaries

- Continuing to maintain cash transfer policy for the orphans, abandoned children, children with severe disabilities, special severe disabilities and other children with special difficult circumstances according to the Decree136 (increased around 1%/year).

- Children are only with mother or father (instead of single parent with young children) is increased around 1%/year.

- Caregiver of children (is increased around 1% year).

- Enlarging cash transfer policy with universal access characteristics for children under 36 months; primarily, the budget is limited, for the period of 2016-2020 it is oriented to children under 36 month in poor household and ethnic minority group (about 20% of children under 36 month with 600.000 VND/child) Coverage rate about 2.3% total children in population.

However, there is a plan of subsidies for all of children under 36 months of age approximately 3 million children, if including this group, the coverage rate will be 10% of children in population .

* Level of subsidies

- Level of subsidies for group of orphan children, abandoned children, children with special difficult circumstances is 405.000 VND/month (11% GDP/person in 2020).

For group of children under 4 years old level of subsidies is 675.000VND/month (18,4% GDP/person in 2020).

- Level of subsidies for single parent with young children is 270.000 VND/month (7,36% GDP/ person in 2020).

- Level of subsidies for caregiver of children is 270.000VND/month.

- Level of subsidies for group of children under 36 month of age, from ethnic minority people, children of poor household is 150.000 VND/month (4% GDP/person in 2020).

Total budget is about 1.800 billion VND (0,03% GDP in 2020).

If the plan of subsidies for all of children under 36 months, annual funding will be increased about 1,440 billion VND, the total budget of 3.240 billion VND (0,05% GDP in 2020).

Expected beneficiaries and budgets for children and caregivers for the period of 2016-2020

(Unit: 1000 people and billion VND )




2016

2017

2018

2019

2020

Children... (1000)

50

50,5

51

51,5

52

Budget (billion VND)

243

245

247,8

250

252,7

Children in single-parent family (1000)

126

127

128

129

130

Budget (billion VND)

408

411

414,7

418

421

Carer of children (1000)

17

18

19

20

21

Budget (billion VND)

55

58

61

64

67

Children under 36 months old (belong to either poor or ethnic minority group)

600

600

600

600

600

Budget (billion VND)

360

360

360

360

360

Total beneficiaries (1000)

793

795,5

798

800,5

803

Total budget(billion VND)

1.786

1.794

1.803,5

1.812

1.820,7

b) Period of 2021-2025

* Beneficiaries

- Orphans, abandoned children and children in similar circumstances, such as children being orphaned and disadvantaged as Decree 136 (referred as orphans). - Children living with mother or father instead of subsidy policy for single parents with young children.

- Caregivers of children who have special circumstances.

- Extended to all groups of children under 36 months irrespective of poor or non-poor, minority or not the minority; But can still be considered plans to exclude affluent families; about 3 million.

- Extended to groups of women give birth without allowance, there are about 1 million people / year.

- Coverage is about 13% of the total number of children in 2025.

*level of subsidies

- Standard level of social subsidies may be increased to 400.000VND / month.

- Subsidy rate for the group of orphans, abandoned, disabled, other especially difficulties remain a coefficient of 2 compared to standard social subsidies is 800.000VND / month.

- Children with only foster parent, subsidies level is 400.000 VND/month.

- Subsidy rate for children under 36 months of age remains in ½ of standard level is 200.000 VND/month.

- The level of subsidies to foster is 800.000VND / month (coefficient 2) to encourage the development of forms of alternative care and reduce number of children in social care facilities

- Subsidies level for maternity is 2 million VND /time.

- Budget is about 0,108 % GDP.

Expected beneficiaries and budget for children and caregivers for period 2021-2025

(Unit: 1.000 people and billion VND)




2021

2022

2023

2024

2025

Children... (1000)

53

54

55

56

57

Budget (billion VND)

508

518

528

537

547

Children in single-parent family (1000)

131

132

133

134

135

Budget (billion VND)

628

633

638

643

648

Carer of children (1000)

25

30

35

40

45

Budget (billion VND)

240

288

336

384

432

Children under 36 months old

3.000

3.000

3.000

3.000

3.000

Budget (billion VND)

7.200

7.200

7.200

7.200

7.200

Pregnant women (1000)

1000

1000

1000

1000

1000

Budget (billion VND)

2.000

2.000

2.000

2.000

2.000

Total beneficiary (1000)

4.209

4.216

4.223

4.230

4.237

Total budget (billion VND)

10.576

10.639

10.702

10.764

10.827

c) Period of 2026-2030

* Beneficiaries

- Beneficiaries are as the same as in the period of 2021-2025, there is only the variation in the number of beneficiaries that is increased insignificantly about 1%/year (increased around 42 -47 thousand/year), within 5 years is increased about 210- 235 thousand beneficiaries ).

* Level of subsidies

- The level of subsidies for the lowest subsidies group increased 600 thousand / month (standard), the target groups will increase over the corresponding coefficients, except for women who gave birth, subsidies remained unchanged at 2 million VND / birth and children under age 36 months remained unchanged at 200 thousand VND / month.

d) Socio – economic impact on children women in maternity, families and communities.

At the individual level: Policies for children and childbirth women will contribute to improve situation of malnutrition, helps children to access to education and better health care, ensuring the equality between women and men. At the household level: contributing to improve the lives of families, enhancing the ability to cope with the risks of households, strengthen economic if they use that money to invest in economic development.

At the National level: Promote economic development through the beneficiaries of social assistance those use the money for personal consumption, use of the product by the manufacturer and service provider; in the social aspects cash policies transfer also contributes to ensure stability, social justice.

2.5. Policy of cash benefits for three main groups of beneficiaries

Estimate of beneficiaries and budget for 2020 and 2025

Unit: 1,000 people, rate %, billion VND and % GDP

Beneficiaries

Beneficiaries & coverage 2020

Beneficiaries and coverage 2025

Budget 2020

Budget 2020 against GDP

Budget 2025 (billion VND dong)

Budget 2025 against GDP

Elderly

1,800 - 20%

2400-24%

6,500

0.115%

12,900

0.13%

Disabled

100 - 15%

1,100 -16%

4,400

0.075%

6,900

0.07%

Orphan

800 - 2.5%

4,200-13%

1,800

0.03%

10,800

0.11%

Total

3600 - 3.7% of population

7.700- 7.7% of population

12,700

0.22%

30,600

0.31%

2.6. Cash transfer policy and other cash nature policy

Besides policy cash allowances mentioned above and some cash nature policies as follows:

- Policy for electricity subsidies for poor households.

- Policy support lunches for students in kindergarten, elementary ethnic residents in communes with special difficulties.

- Policy support lunch, subsidies for boarding students from ethnic residents in communes with special difficulties.

- Policy support money to buy books and school supplies.

- Tuition fee exemption policy.

- The policy of subsidies and care and treatment for people living with HIV/AIDS.

- Policy support and assistance granted health insurance part of the purchase of health insurance cards.

- Policies to support vocational training and employment for people with disabilities, children.

* Option 1: Remain the same and adjust the allowance corresponding with the current socio-economic condition.

* Option 2:

- To maintain the above subsidy policy for the remainder of 2020, only remove the policy of electricity subsidy.

- From 2021, integrate education support policy for children to cash transfer policy with the condition of ensuring nutrition and school enrolment rate, design the family-package assistance for low-income family having children (in the event of budget constraints, may apply the policy to poor group only).

- The policy of medical assistance, (health insurance card provision, and support for purchasing health insurance card in accordance to the Law on Health Insurance).

- Modify the remaining social assistance policy to be suitable with the particular socio-economic context.

3. Improvement of emergency social assistance policy

3.1 Principles

- Ensure the promptness

- Target right beneficiaries/right needs

- Ensure equality

- Ensure transparency, no leakage of resources

Summed up the principles in 9 words: “Promptness, right beneficiaries, fairness, transparency, no leakage of resources”.

Those principles must be institutionalized by the mechanism/legal documents on emergency social assistance in case of emergency (at least institutionalized in Circular of the MOLISA on guiding procedures for emergency assistance/relief).

3.2 Emergency assistance motto

Emergency assistance motto or model is encapsulated in 18 words: “On-site commanding; On-site forces; On-site vehicles and supplies; On-site logistics”.

This motto has been done for years, but should be concretized by the mechanism/legal documents to implement; e.g. regulations on formation, management and use of reserved funds at commune/district; establish risk prevention fund at communal level with the participation of the people; define the responsibilities of people and village/commune/district to respond to risks and emergency relief; regulations on village/commune (community) during the rainy season.

3.3. Policy improvement

- Gradually expand the group of people entitled to emergency assistance in line with the conditions of socio-economic development at each period. In the short-term and medium-term assistance focused beneficiaries at risk for sudden public nature (natural disasters, crop failures, epidemics, the impact of climate change). In the long term gradually expanded for both personal risks such as accidents, fires, victims of domestic violence, trafficking of women and children.

- Develop criteria for determining the level of risk damage as basis for determining the appropriate assistance for each beneficiary group to ensure fairness (assistance level consistent with the level of damage).

- Develop a roadmap to raise emergency social assistance subsistence to minimum living standard to ensure the need of stabilizing life of beneficiaries.

- There are mechanisms and policies to encourage individuals, families, community, economic organizations, enterprises, social organizations, non-governmental organizations participated in the emergency social relief.

- Install (connect) emergency assistance policies with national target programs or national programs (new rural development, employment, sustainable poverty reduction, prevention the negative impacts of climate change), with the development of insurance forms (insurance in production, property insurance, life insurance) in areas prone to natural disasters, storms, floods and the effects of climate change with the support of Government.

- Develop model “reserved fund, ensuring emergency assistance” at the local level (districts and communes) with decentralization mechanism, flexible and timely manner; promoting the development of community-based microfinance institutions implement emergency assistance/short-term.

- Strengthen decentralization for local government in pro-actively tackling small-scale risk (at village and at household level).

- Strengthening the role of the Fatherland Front system in mobilization, management and use of resources mobilized from the community for urgent relief purpose.

- A pilot study to form the reserves for risk prevention in community (village level) with the contribution mechanisms of people, mobilization of community contributions and partial support from the local budgets of all levels, to enhance the ability to cope with risks. If successful, this model can be replicated nationwide.

3.4. Estimates of urgent assistance resources during 2015-20258

Based on 2010- 2014 data series of emergency funding, we can estimate resources needed for livelihood assistance as follows:

- Total resources in the period 2015-2025 for emergency assistance is expected to be 49,596 billion VND, accounting for 0.07% of GDP.

In which: the state budget is 45,504 billion VND, accounting for 91.75% of total emergency fund, the remaining 4,091 billion VND (equivalent to 8.25%) is mobilized from community.

- On average, each year, the state budget spends 4,136 billion VND, in which the central budget is about 1,013 billion VND (24.5% of total funding for emergency reserve is about 3.12% of State budget reserves); local budget of about 3,123 billion VND (75.5% of total emergency assistance funding).

- On average, each year, resources for emergency assistance have been allocated as follows:

Expenditure to support the dead, missing is about 1.7 billion VND accounting for 0.04%.

Expenditures to support serious injuries is about 1.4 billion VND accounting for 0.03% of.

Expenditures to support collapsed, drifted houses is about 59 billion VND accounting for 1.42%.

Expenditures to support severely damaged houses is about 3,795 billion VND accounting for 91.7%.

Expenses for food aid (rice equivalent) is about 279 billion VND accounting for 6.7%.

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