The Chinese government has planned to put in over 70 billion yuan (about 8.46 billion US dollars) in rural infrastructure construction in 2005, said Chen Xiwen, deputy director of the Office of the Central Financial Work Leading Group, at a press conference held by the Information Office of the State Council in Beijing Monday.

Governmental fund in agriculture usually takes one third of the financial investment of the state. Since the financing channels for agricultural infrastructure are diversified, said Chen, government fund has not been the largest part.

According to the just published "No. 1 Document" by the central authority, governments at all levels must spend in rural areas no less than 70 percent of their newly added funds in social undertakings including education, public health and culture. Meanwhile, counties and townships with financial difficulties in central and western China will enjoy from this year a higher degree of transfer payment from the state.

Talking about the nation's poverty population, Chen said that by 2003 there had remained 29 million people nationwide without adequate food and clothing, while the figure was cut to 26 million in 2004, setting a record year of poverty alleviation.

The government will continue its efforts in reducing rural poverty, Chen said, and the poverty population will keep on declining from 26 million.

By People's Daily Online