Shot in the arm for rural infrastructure

About 4 to 5 percent of the additional 100 billion yuan ($14.65 billion) expenditure the central government announced on Tuesday will be used to improve rural infrastructure, a source in the Ministry of Agriculture (MOA) has said.

Rural infrastructure is among the 10 major steps China is taking to raise domestic demand and boost the economy, which is the aim of the central government's 4-trillion-yuan stimulus package. Eleven ministries have been allocated 100 billion yuan and given time till early March to spend it.

The Ministry of Water Resources has said it would use one-fourth of the 20 billion yuan it has got to provide safe drinking water in rural areas, and one-tenth to expedite the North-South water diversion project.