According to an official investment guidebook released in
Beijing on Tuesday China's central government has budgeted more
than 50 billion yuan (US$6.25 billion) to finance rural
construction and development this year. ?
The document released by the National Development and Reform
Commission (NDRC) explains that approximately 31 billion yuan
(US$3.9 billion) would be used to support grain production,
infrastructure development, education, sanitation, poverty
alleviation and the development of grass-roots democracy. Over the
past five years government financing of these types of projects
reached 25 billion yuan (US$3.1 billion) a year.
Investment in water supply facilities is budgeted at 4 billion
yuan (US$500 million)--an increase of 100 percent from a year
earlier. The central government is expected to spend 2.5 billion
yuan (US$300 million) in the development of marsh gas projects
which is an increase of 150 percent over the previous year.
Another 19 billion yuan (US$2.4 billion) has been budgeted for
environmental protection, the development of large grain production
bases and the country's off-shore fishing industry.
The document said the increased expenditure was designed to
"shift the focus of the country's infrastructure construction to
the rural areas."
According to the guidebook, better budget management and
improved spending efficiency were high priorities.
Starting this year the commission will provide details on which
sectors need capital support in rural China and make them public to
better guide investment from local governments.
(Xinhua News Agency July 5, 2006)