The government is to expand its subsistence allowance system to provide a better standard of living for the country's rural poor.

At an executive meeting chaired by Premier Wen Jiabao on Wednesday, the State Council agreed to include all needy people in rural areas, including the aged, disabled and those who are unable to work, under the revised program.

Wen promised in a government work report at the annual parliament session in March to expand the allowance system to all rural areas this year after staging a number of pilot projects.

The system is already up and running in 23 provinces and benefits 15.93 million people, about 70 percent of the total number of rural poor.

Local governments are responsible for the operation of the allowance program with the central government providing additional funds to areas with financial difficulties, it was said at the meeting.

A document released after the meeting said that establishing the allowance system was an important step in narrowing the gap between rural and urban areas and safeguarding social equity.

Local governments should strengthen the management of the allowance funds and be transparent in their operations, the document said.

At the end of 2005, China had 23.65 million rural poor, with an annual per capita income of less than 683 yuan ($90). The total was down 5.62 million on 2001, according to figures from the State Council Leading Group of the Office of Poverty Alleviation and Development.

The meeting also approved in principle the draft of the Regulations on the Implementation of the Administrative Reconsideration Law.

China adopted the Administrative Reconsideration Law, which allows people to petition to higher authorities to correct the mistakes of lower ones, in 1999.

The meeting said it was necessary to make a detailed explanation of the law in order to make it more conducive to settling administrative disputes and resolving social conflicts.

The draft will be further revised before being promulgated by the State Council.

China Daily-Xinhua

(China Daily 05/25/2007 page4)