From this year onward coverage of the minimum living allowance system for rural areas will be expanded from pilot areas to encompass all rural lands, the State Council said.

This coverage will provide the rural poor a basic social safety net. Yet where do these funds come from? Who would be covered? What regulations are already in operation? To clarify these issues, the People's Daily interviewed Li Liguo, vice minister of civil affairs.

System takes shape across the nation

According to Li, the initiative to provide minimum living allowance in rural areas was raised at the 16th National Congress of the Communist Party of China (CPC) in 2002. It began well. By the end of last year, 24 provinces, autonomous regions and municipalities have established such a system, covering a total of 15.09 million people. By the end of June 2007, the figures rose to 31 and 20.86 million respectively.

3 billion granted in subsidies

Concerning the implementation of this system in places with poor financial resources, Li said that the central government requires the local government, whether in developed provinces or underdeveloped regions, to incorporate the input on subsistence allowance into its fiscal budget. Local financial authorities are urged to give top priority to improving people's livelihoods while devising the budget.

In addition to money from local finances, other important financial channels are the special grants allotted by the central government. This money is granted to local governments that are struggling financially.

In 2007, the Ministry of Finance granted 3 billion yuan in subsidies for this purpose. Meanwhile, the central government has also asked local governments at all levels, the provincial in particular, to increase their input regarding subsistence allowances. The 24 provincial governments put a total of 5.55 billion yuan into the pot last year. 7 billion yuan is visible for the current year.

Transparent operation

When asked how to ensure that the system as well as the supervision is functioning well, Li said the key is to prevent malpractice and fiscal irregularities so that no unqualified candidates are covered.

The State Council requires through information disclosure. The procedure is standardized and consists of three steps: investigation of a candidate's income, followed by deliberation at village level; checks on the income at the township level; assessment and approval of candidates at the county level.

In the meantime, intra-department supervision is combined with administrative ethics building to ensure the system functions well. Watchdogs not only include those in finance, auditing and supervision departments, but also included are the media, delegates from the people's congress.

In the future, all oversights would be institutionalized, guaranteeing that more work would be done on a daily basis.

More focus on vulnerable groups

Li also answered following questions: What are the conditions to qualify as an eligible rural candidate? How do the old, the young and the disabled apply for the allowance?

According to him, the State Council has stipulated in its document that beneficiaries of the rural minimum living allowance system will be rural residents whose annual per capita net income is lower than the local minimum living standard. These are largely those who suffer chronic living difficulties due to illness, disabilities, old age, or poor living conditions.

Regarding the minimum living standard, it depends upon local conditions. The National Bureau of Statistics releases the rural poverty line listing every year. It was 683 yuan and 693 yuan for 2005 and 2006 respectively.

Anyone who meets both the national requirements and the local requirements can apply for the allowance. Candidates undergo an investigation until they meet with approval.

One of the merits in this system is that the old, the disabled and orphans are entitled to a few special services. This is handled in two ways; those who suffer from very poor living conditions would be entitled to relatively higher subsistence allowances. If a candidate has difficulties applying for or obtaining the money, he or she could ask his or her supporter, guardian or neighbor to do it for him or her.

(China.org.cn by Xu Jin, Aug 29, 2007)