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A Tale of Two Regions

Xinhua News Agency, March 11, 2012 Adjust font size:

Other deputies support the government's role in helping to spark economic development in poorer areas.

"The imbalance between regions can't just be resolved through the workings of the market. Using the 'visible hand' of the government to provide coordination is appropriate. Any country would act this way, otherwise the country can't be stable," said Yang Fugang, an NPC deputy and head of the Tianjin Municipal Bureau of Finance.

According to the Ministry of Finance, the central fiscal is planning to allocate about 1.38 trillion yuan (about US$222 billion) for education, health care, the social security system, employment services, housing support and cultural development this year, up 19.8 percent from last year.

In addition, the government is planning to spend about 1.51 trillion yuan on irrigation and drainage, public transportation, energy-saving and environmental protection, and community affairs. All in all, more transfer payments will be made this year from the central government to local governments than before in order to reduce regional imbalances.

"The government should provide coordination. It should redistribute funds. It should pay attention to eradicating income unfairness and excessive inequality," said Chen Qitao, Party chief of Bengbu, Anhui Province and an NPC deputy.

"Managing the balance in society is a test of every level of government," Chen said. "It's like playing cards. Whether you win or lose depends on how you play your hand."

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