China will enlarge state financial coverage in the countryside to boost development in rural areas, said Premier Wen Jiabao in a speech released by the State Council on Thursday.

Wen said the development imbalance between rural and urban areas has long been a problem in China.

While the cities enjoyed rapid social and economic development, the countryside lagged far behind. The premier said such a status must be changed.

The government will work hard in the 2006-2010 period to improve rural living and production conditions by stimulating investment into the countryside and strengthening infrastructure construction there, Wen said.

As a strategic move in the following five years, the premier said, the government is determined to shift more funds to rural areas.

Wen said that the countryside will see more injection from state budget and public debt in 2006 than in last year.

He urged local governments and public service sectors to divert more of their resources to rural areas.

Also, cities should expand financial injection into suburban areas and counties under their administration, and encourage enterprises and related departments to provide aid to rural areas, the premier said.

He said the government will stimulate rural people's own initiative to improve rural infrastructures by offering subsidies or free construction materials.

Wen said the government will deepen institutional reform at township level to strengthen township governments' competence in social management and public service.

Financial reform at county and township levels will also be continued in the following five years, he said.

The premier said compulsory education will be promoted as part of the reform in rural areas.

Source: Xinhua