China boosts spending on farmers, science and environment

2008-3-6  From Shanghai Daily

CHINA pledged to spend more money this year to improve the lives of millions of farmers while the government will also step up support for education, the environment and science development.

Total government expenditures will climb 22.6 percent from a year ago, or 1.12 trillion yuan (US$157.82 billion), to 6.08 trillion yuan this year, Xinhua news agency reported today, citing the Ministry of Finance's budget proposal.

The proposal was submitted to the ongoing annual meeting of the National People's Congress yesterday.

Problems in agriculture, the nation's vast rural areas and the lives of billions of farmers are high priorities for the central government as a total of 562.5 billion yuan will be allocated from the government's fiscal budget, an increase of 30.3 percent, or 130.7 billion yuan, from 2007.

The government expenditure will also use 276.16 billion yuan this year to improve the social security network and employment situation. This is a jump of 24.2 percent from a year ago, the report said.

Outlays on education will take a slice of 156.18 billion yuan, or a yearly gain of 45.4 percent, from the government expenditure, followed by 83.16 billion yuan on public health and 27 billion yuan on energy reserves and emissions reductions, the report added.

The government will also increase the budget to 14.78 billion yuan this year to encourage high technology studies and research while 6.8 billion yuan is expected to support low-rent housing projects across the country.

The report also revealed that fiscal revenue is expected to rise by a year-on-year basis of 14 percent to 5.8 trillion yuan this year.

It also added that the government would continue a stable monetary policy to prevent fast economic growth from overheating and rein in inflation.

The fiscal deficit will be cut between 20 billion yuan and 180 billion yuan this year, which is expected to lower gross domestic product 0.6 percent.