Subsistence allowance system to all rural poor

The Chinese government will expand the subsistence allowance system to all rural poor, said Wen.

The move is expected to bring a poverty-stricken population of 23.7 million under the social security net.

"We will set up a nationwide basic minimum cost of living allowance system this year for rural residents, which has great and far-reaching significance for promoting social fairness and building a harmonious society," Wen told 2,890 NPC deputies assembled at the Great Hall of the People.

NPC deputy Fu Qiping, a village head from Ningbo, Zhejiang Province, said the government's decision to cover all the rural poor under the social security net represents a "big step in poverty alleviation for the vast rural population."

About 23.65 million rural residents living in "abject poverty" in China by the end of 2006 with an annual per capita income less than 683 yuan (87.6 U.S.dollars), according to statistics of the State Council Leading Group of Office of Poverty Alleviation and Development.

Premier Wen said all local governments should set reasonable eligibility requirements to receive such allowances and a reasonable level for allowances based on local conditions.

"Areas with financial difficulties will receive appropriate assistance from the central government budget." Wen said.

Wu Jianmin, spokesman of the annual session of the CPPCC National Committee that opened on March 3, said an annual funding of six billion yuan (780 million U.S.dollars) can make nationwide rural subsistence allowance system possible, given the annual average subsistence allowance of 300 yuan (39 U.S.dollars) in 2005 among pilot areas.

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