CRI听力：China to Complete Rural Allowance System

The Chinese government is to set up a minimum living allowance system for rural areas by the end of this year.

The move is part of steps the government is taking to reduce the growing income gap between the rural and urban areas.

CRI's Lin Lin takes a closer look.

REPORTER: In the past 3 decades since the implementation of the reform and opening up policy, almost 230 million people have been lifted out of poverty, and so far, the population living under the poverty line has shrunken by nearly 90%. However, China's cabinet, the State Council says in a recent report that despite years of poverty alleviation work that has lifted millions out of poverty, part of the rural population is still very poor and such people are in urgent need of government subsidies.

To secure the basic needs for people in extreme poverty, the State Council has released a new regulation expanding the minimum living stipend system to all counties and villages. Dr. Zhang Shifei from the social policy center at the Chinese Academy of Social Sciences says the expansion will narrow the income disparity between rural and urban areas given people in the countryside are always on the forefront to be hit by price hikes, but the last to receive income increases.

"The work to complete the system is of great importance to promote rural social economic development, and it provides a framework of guiding related documents to be released by local governments."

In the regulation, new members to be covered by the system will include those whose annual net income is bellow the minimum living standards in the region, particularly those who are suffering from physical difficulties or living under extreme natural conditions.

It stipulates that the criteria for minimum living allowance will depend on local conditions and social and economic development of a place and the criteria can change depending on the fluctuation in local prices of essentials and improvement in living standards.

In addition, allowance funds will be managed separately and measures will be taken to ensure that they are paid to the right people at the right time.

To ensure timely enforcement, the Ministry of Finance has allocated 3 billion yuan, about 400 million US dollars early this year for aid funds for rural low-income households. Dr. Zhang Shifei says as majority of the funds will be from local governments, support from the central government is influential.

"The aid funds from the central government will be a great help in regional poverty relief programs, and the introduction of central budget is laying a solid fiscal foundation to promote the system nationwide."

With money from the central government, investment into the rural allowance system will total 10 billion yuan, approximately 1.3 billion US dollars, doubling the figure from last year, and officials have indicated the investment will continue to grow in the years to come to help more poverty-stricken people.

Lin Lin, CRI News