China to spend billions on ambitious rural reform program
(AP)
Updated: 2006-03-08 13:33

China plans to spend billions of extra dollars this year to raise incomes and education standards in poor rural areas to build a "new socialist countryside."

Officials on Wednesday were preparing to unveil details of the new program at a news conference by Vice Minister of Agriculture Yin Chengjie and other officials.

Chinese Premier Wen Jiabao announced Sunday in an address to the annual session of the country's parliament that Beijing will budget an extra 42.2 billion yuan (US$5.2 billion; euro4.33 billion) to raise spending on rural areas by 15 percent this year to 339.7 billion yuan (US$41.9 billion; euro34.86 billion).

The campaign is the government's most comprehensive attempt so far to quell mounting rural anger over chronic poverty, corruption and other problems. Wen called the program "a major historic task for China."

China's vast countryside is home to 800 million of its 1.3 billion people, and many outside the cities have failed to share in the fruits of the booming economy.