Glamor Economics

Chapter 129

Chapter 17 Section 2 How to Share the Fruits of Development—National Income Distribution Policy

In 2009, the Party Central Committee and the State Council decided to reform the salary system of civil servants and standardize the order of civil servant income distribution on the basis of comprehensively analyzing the economic and social development situation and coordinating the interests of all parties. Income distribution system, rationally adjust the treatment of retirees from government agencies and institutions, improve the salary system of government workers, and appropriately increase the basic pension standards for retirees from enterprises, the standard of pension subsidies for various special care objects, and the level of subsidies for urban minimum security objects.

While reforming the salary system for civil servants this time, the basic pension standard for enterprise retirees will be raised again, and the basic pension insurance system for enterprise employees will be further improved; veterans of the Red Army, separated personnel of the Red Army), "three families" (family members of revolutionary martyrs, family members of soldiers who died on duty, family members of soldiers who died of illness) and other special care objects; The treatment standards of the retired cadres under management shall be increased at the same rate; the treatment standards shall be appropriately raised for the retired military workers without military status and the staff of the military retired cadre management institutions transferred to the government; for the urban residents' minimum living security objects, the subsidy level shall be appropriately increased .

In a broad sense, the distribution of national income refers to the distribution of the results of economic activities in a country among various economic entities within a certain period of time; in a narrow sense, it refers to the distribution process of national income among various sectors of the national economy, various production units and non-production units, and residents.As far as China is concerned, it includes three processes of primary distribution, redistribution and final distribution.

The primary distribution of national income refers to the distribution of national income within the field of material production.After primary distribution, national income is divided into two components: one part is the personal income of laborers in the field of material production, including wages, bonuses, welfare expenses and income of farmers or other laborers, which belongs to the personal consumption of producers and their families. The other part is the net income of production units and society, including taxes and profits turned over to the state, interest paid and after-tax profits of enterprises, profit retention or provident funds, public welfare funds, etc., which belong to the national income after deducting necessary products. .

The redistribution of national income is the further distribution of national income on the basis of the initial distribution.This distribution is carried out within the whole society.Income obtained through redistribution is called derived income.The main forms of redistribution are:

1. Fiscal expenditure.Through the fiscal budget, on the one hand, a part of the national income is concentrated in the form of profits and taxes; on the other hand, the concentrated national income is distributed to various departments and regions through financial subsidies and wages paid to workers in non-production sectors. To meet the needs of social production, development of science, culture, education, administrative management and strengthening of national defense.

2. Credit.On the condition of repayment, the process of redistribution is realized by raising social idle funds and lending them to users.

3. Price.The state establishes a reasonable price system through various price forms such as mandatory prices, guiding prices, and market-adjusted prices to realize the redistribution of national income.In addition, various labor service payments, gifts among residents, and various welfare programs directly organized by production units can also affect the redistribution of national income.The redistribution of national income finally forms the final income of production units, non-production units and residents.

The final distribution of national income is the final distribution of national income to accumulation and consumption after the initial distribution and redistribution.The main thing is to correctly determine the ratio of accumulation funds and consumption funds, so that the total demand of accumulation funds and consumption funds is balanced with the total supply of national income, so that the value form and physical form of accumulation and consumption are compatible, and the internal and consumption of accumulation funds are well arranged. The internal structure of the fund ensures the continuous expansion of production and the gradual improvement of the living standards of the masses.

[links to related words]

Price policy The general term for a series of policies and measures adopted by the country on commodity prices in order to achieve certain macro goals.

(End of this chapter)