29 Provinces to Make Incomes Ratchet with GDP Growth

A total of 29 provinces announced in their local planning during the 12th Five-Year Plan (2011-2015) period that they would work to bring residents' income up to match the pace of economic growth, Shanghai Securities News reported Friday, citing sources from the National Development and Reform Commission (NDRC).

This is a response to the central government's target of maintaining income increases at the same speed of economic growth and make pay keep up with the increase of labor productivity, the report said.

Among the 29 provinces, five announced in their regional plans they would make residents' income increase faster than economic growth, 19 said they would maintain income increases at the same pace of economic growth and five declared they would basically keep incomes and the economy to grow at the same pace, the report said.

According to the 12th Five-Year Plan, China is targeting an annual average economic growth rate of seven percent in the next five years. It is also targeting an annual average income growth, for both urban and rural residents, of over seven percent. It points out that income increase targets should be set no less than GDP growth expectations, the report said.