Parliament approved the budget of the Social Fund of Kyrgyzstan for 2016. Today, the draft budget for 2016 and the first forecast for the Social Fund budget for the years 2017-2018 were approved in the third reading at a meeting of Parliament. They will be sent for signature to the President.
Recall, the Social Fund budget for 2016 was formed on the income in the amount of 42, 885 billion soms, and in 2017 and 2018 it is planned to increase it up to 45 billion and 48 billion respectively.
It is expected that in 2016 there will be received 24, 828,000 billion soms of insurance premiums. However, about 17.46 billion soms will be allocated to the social fund from the state budget for the financing of the basic pension, amounting to 95 percent of annual demand.
Revenue from other income from dividends on share, interest accrued on cash balance, fines and penalties as well as income from the placement of temporarily surplus funds and interest provided for deferral (installment) in 2016 is expected to reach 111.87 million soms. The same pension fund in 2016 plans to receive 39, 652 billion soms.
To increase pensions, the budget of the Social Fund for 2016 was allocated funds in the amount of 854,460 million soms. The citizens will start to receive new pensions in October 2016.
As for the expenditure side, in 2016 the Social Fund expects to settle the debt in 33,217 million soms for insurance premiums in 2014 to the Mandatory Health Insurance Fund (HIF). And HIF is planned to be financed at 1, 819.86 billion soms. Also 23,479 million soms will be transferred to Recovery Fund for workers, the cost of which will amount to about 240 million soms.
By the way, the income from the investment of the Social Fund in 2016, according to prognosis, will amount to little more than 1 billion soms. And about 114.5 million soms the Social Fund intends to pay as part of a funded pension to those who go for permanent residence outside the country, and the heirs of those who made contributions to the Social Fund.