Quality of life a rising priority

GUANGZHOU - The provincial government plans to make generous funding available over the next five years for projects that improve people's quality of life.

"The provincial finance department places great importance on increasing the amount of capital available for improving people's lives in the 12th Five-Year finance plan," said department head Zeng Zhiquan.

The official said the province will budget at least 100 billion yuan each year for education by the year 2015, about one-fourth of the province's general budget.

Guangdong will also improve medical and other public facilities at the grassroots level while extending a new pension plan for the aged to cover the whole province in three years. As well, authorities plan to offer subsidies, a new type of rural cooperative medical system and increased rural sanitation services.

The new pension system is a pilot program formulated by the central government in 2009 that funds most of the retirement plan, with very little contributed by rural residents. Those covered will get at least 55 yuan per month at the age of 60 onward.

The new type of rural cooperative medical system, similar to medical insurance, was started on a trial basis in 2003 by pooling funds from individual payments, collective support and government subsidies.

Guangdong's present subsidy for rural medical services is 120 yuan per capita annually and 15 yuan per capita for rural public sanitation.

The province will also see bigger budgets to assist agricultural production, irrigation and rural drinking water, as well as for job training programs across the province.

Guangdong recorded actual year-on-year GDP growth of 12.4 percent from 2005 to 2010. The province's fiscal revenues hit 1.18 trillion yuan in 2010, an increase of almost 31 percent over the preceding year.

But planners are cautious about future growth.

"Guangdong has set its GDP growth target at 8 percent yearly in the 12th Five-Year Plan (2011-2015), lower than the previous period," he said. "That means the province might have lower fiscal revenues in the coming five years."

Zeng said that the provincial finance department will use approaches ranging from interest discounts, fundraising and financial subsidies to fund the "Happy Guangdong" campaign.

He said the department will also "mitigate" spending on government administration and financial support to State-owned enterprises.

(China Daily 06/01/2011 page60)