Increased Fiscal Support Lifts 2.85 Million Out of Poverty

Increased fiscal support to the poor population in central China's Henan Province has lifted 2.85 million poverty-stricken people out of poverty during the past five years.

As a result, the number of people under poverty line in the 34 poverty-stricken counties in Henan had been reduced to 1.25 million by the end of 1999 from the 4.1 million in 1994. And the average per capita income of rural residents in the area had risen to 1,466 yuan from the 501 yuan in 1995.

The main reason behind the improving picture is the intensified poverty-reduction financial support by the government as a result of the implementation of a national program designed to basically eliminate poverty by the year 2000. A total of 1.7 billion yuan has been injected into the poor areas in such forms as subsidies and poverty-reduction funds to alleviate poverty and facilitate development during the five-year period.

Preferential fiscal policies were also adopted to support the 34 poverty-stricken counties in Henan, including allocation of special poverty-reduction and development funds and fiscal subsidies, tax breaks, and exemption of some taxes.

Governments at all levels have also focused on upgrading the infrastructure in poor areas as so to make full use of the fiscal funds for poverty-reduction. A total of 340 million yuan were invested in rural infrastructure in poor areas in 1998 and 1999 alone, renovating 24 small-size reservoirs, completing 1090 water control projects and 1229 water supply projects, building 1,204 kilometers of highways and 27 hydroelectric power stations, and erecting 2,744 kilometers of electricity-transmission lines.



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