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Paying for the priorities

(China Daily)
Updated: 2007-03-06 07:13

Premier Wen Jiabao vowed yesterday to enable both rural and urban residents, particularly the poor, to enjoy the sunshine of public finance.

This heartening remark reflected a significant shift in the Chinese government's budget priorities from economic growth toward the welfare of the people.

After years of fast economic expansion, China has become financially better prepared to promote faster progress in social programs.

With a firm grasp of the burning problems that are of greatest concern to the people, the Chinese authorities are now delivering the long-awaited changes through a budget that ensures that all people share the fruits of reform and development.

China's policymakers have attached increasing importance to addressing the underdevelopment of various social causes in recent years. But the government work report Premier Wen delivered yesterday distinguishes itself from its predecessors with unprecedented stress on education, healthcare and other crucial social programs.

A hefty educational investment plan has been announced. A total of 85.85 billion yuan ($11 billion) will be allocated from the central budget this year, an increase of 41.7 percent over the previous year.

A proposal to double the central government's subsidy for the rural cooperative medical care system has been put forward.

The establishment this year of a national basic minimum cost of living allowance has been promised for rural residents.

All these social causes are of great and far-reaching significance in promoting social fairness and building a harmonious society. Though the fiscal support the central government currently provides may not be enough to fix these problems any time soon, the new budget priorities point to strengthened and sustained public financing for social programs.

An improved social security network for all can help narrow the widening wealth disparity between urban and rural areas.

It can also enable the people to loosen their purse strings. Increased domestic consumption is a precondition for the country to reduce its dependence on export-led growth.