China Focus: China increases input in people's livelihood despite slower growth

Retiree Xia Moujie was quick to work out his own gains after Premier Li Keqiang on Thursday announced the basic pension benefits for enterprise retirees would be increased by 10 percent.

"My pension will be doubled to more than 2,800 yuan (447 U.S. dollars) a month compared with the figure eight years ago," said Xia, a native of central China's Hubei province.

Premier Li promised the increase during his work report to parliament's annual session on Thursday. It will mark the 11 consecutive year of adjustment for the pension insurance of enterprise retirees.

"Thanks to the constant increases, the living standard of my wife and I has been ensured despite rising prices," the 68-year-old said.

China's economy grew 7.4 percent in 2014 and revenue in the general public budgets grew by 8.6 percent, both the weakest annual expansion in more than two decades. The government has further lowered this year's growth target to approximately 7 percent.

However, the Premier's report sent a strong signal that government input in improving people's living standards and promoting social development would outpace GDP growth this year.

To build up a basic safety net, the government sustained increases in spending to areas that are important for improving standards of living in the past year, Li said.

"Despite a slowdown in the growth of government revenue and increased pressure on expenditures, more than 70 percent of last year's government budget was spent on ensuring standards of living," Li said.

With increasing people's quality of life as the objective, Li said the government will "accelerate the development of social programs, reform and improve the income distribution system, do everything possible to increase people's incomes, and promote social equity, justice, harmony, and progress" in 2015.

According to the report, the monthly basic pension benefits for rural and non-working urban residents will be raised from 55 yuan to 70 yuan per person.

This is the first time for China to raise the standard uniformly nationwide. The move will benefit more than 100 million rural and urban residents who are 60 or older.

Other measures listed include helping people who have lost their jobs due to structural adjustments or measures to address overcapacity, improving basic medical insurance for rural and non-working urban residents and increasing the annual government subsidy for this insurance from 320 yuan to 380 yuan per person.

"The Chinese leadership is adjusting the income distribution system, boosting rural-urban integration, enhancing social insurance and basic public services with unprecedented efforts," said Shi Xuehua, a scholar in government administration at Beijing Normal University.

"The government attaches more importance to common prosperity, social equity and justice in order to enable more citizens to share the achievements of reform and opening up," he said.

He said increasing fiscal expenditure on people's livelihood is a choice of a service-oriented government.

The scholar, however, warned of augmented spending pressure brought about by the move. Shi suggested the government optimize allocation of fiscal funds by cutting repetitive industrial investment and government spending of public funds and creating channels for more income.

In the government report, Premier Li ordered redoubled efforts to rebuild shanty towns in cities.

"I've been living in such a place for decades. The Premier has mentioned renovating the rundown areas several time in the past two years, which makes me feel hopeful," said Xia.

According to a local government plan, more than 2,800 households including Xia's five-member family are expected to bid farewell to their shanty town neighborhood and move into apartment buildings next year. Endi