China vows to deepen rural reform in 2008

(Xinhua)
Updated: 2008-01-31 13:55

BEIJING - China is set to use more land transfer fees to finance rural development this year as it is making "steady progress in comprehensive rural reform", said an official on Thursday.

"Some arable land has been used in the process of the nation's industrialization and urbanization. The land approved by the State Council in recent years has been an average 2.8 million mu (187,000 hectares) annually," said Chen Xiwen, deputy director of the Office of the Central Leading Group on Financial and Economic Affairs.

To fully guarantee land rights to farmers, China uses a two-layer operative system featuring a combination of centralized and decentralized management with household contract as the basis.

The government would insist on and streamline the system in 2008, said Chen, also director of the Office of the Central Leading Group on Rural Work, at a press conference.

Chen said that reforms of the township institutions and fiscal management system at county and township levels would be further promoted to speed up reform and renovation of rural financial system and to properly settle debts in rural areas.

The press conference was held a day after the Central Committee of the Communist Party of China and State Council jointly issued this year's first policy statement, which is dedicated, again and the fifth time in a row, to rural issues.

Chen said the Party should advance an all-round development of primary Party organizations in rural areas, especially in villages, to improve system of village autonomy, to build leadership in rural primary Party organizations and explore effective mechanisms for village management.

Rural investment to rise by over 100b

The central government will increase its budget for investment in rural areas by more than 100 billion yuan (13.9 billion US dollars) this year.

The total government investment will be more than 520 billion yuan in 2008, based on an investment of 420 billion yuan decided last year. It will cover the construction of infrastructure projects in water, gas and electricity, as well as in agricultural technology, among others.

Also covered are investments in education and medical services and subsidies for low-income families.

However, the final budget will be decided at the country's national congress to be convened early in March, said Chen.

The increased budget for rural areas from the central government was 80 billion yuan in 2007, already a historical record-high increase, according to Chen.