China spent less than four percent of its fiscal expenditure on farmers last year, according to an expert with the Development Research Center (DRC) of the State Council, China's cabinet.

 

Fiscal expenditure in China reached 3.16 trillion yuan in 2005, and eight percent of that was used in areas related to rural development, Han Jun, a DRC rural economy expert, said at a recent forum.

 

Han noted that the actual amount spent on farmers was less than four percent. The rest was used to build water facilities and roads in the countryside.

 

China's fiscal expenditure on rural areas last year was the lowest rate in the past 15 years, said the expert, calling on the government to readjust its expenditure structure and allocate more money to rural areas.

 

There has been a severe imbalance between urban and rural areas in fiscal support from central government. China has focused on developing its industries and cities in the past 20-plus years.

 

Sluggish rural development provides a stark contrast to booming urban economy. China set the goal of building new countryside last year, hoping to achieve balanced development in the country.

 

"China should have readjusted its policies ten years ago," said Han.

 

The building of new countryside is focused on how to optimize the allocation of resources between cities and countryside, and how to resolve the relationship between the state and farmers, he said.

 

The government gained 240 billion yuan in selling the right of land use in 2004 and the figure for last year was around 200 billion yuan. The money should be used on farmers as most of the land sold was in rural areas, said Han.

 

(Xinhua News Agency August 27, 2006)