The State Council, or China's Cabinet, announced Wednesday the government will earmark 26.5 billion yuan (4.2 billion U.S. dollars) to subsidize the consumption of household electrical appliances for a one-year period.

The appliances include air conditioners, flat-panel television sets, refrigerators, washing machines and water heaters that meet energy-saving standards, according to a statement released after an executive meeting of the State Council presided over by Premier Wen Jiabao.

Meanwhile, the government will allocate another 2.2 billion yuan to promote the consumption of energy-saving light bulbs and LEDs (light-emitting diodes) and 6 billion yuan for purchases of vehicles with engine sizes below 1.6 liters, the statement said.

Another 1.6 billion yuan will be earmarked to promote the consumption of highly efficient electrical machinery, according to the statement, which did not elaborate on how the subsidies will be implemented.

The statement said the promotion of energy-saving products can help maintain economic momentum and expand domestic demand, as well as boost economic restructuring and energy savings.

The government will also carry out public campaigns to promote frugality and low-carbon consumption, the statement said.

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