China will increase the monthly subsidy to low-income households by 15 yuan (about US$2.19) for each urban citizen and 10 yuan for each rural resident in 2009, according to sources with the Ministry of Finance.

The central government spent 276.16 billion yuan on social welfare and employment last year, registering an increase of 19.9 percent over that in 2007.

The government hopes to strengthen social welfare and health care, providing higher subsidies for the low-income people and a 10 percent increase in the basic retirement pension for enterprise retirees, Minister of Finance Xie Xuren said at a national conference.

The increase in people's income would encourage consumption and boost economic growth, so that the economy would be kept at a steady and sustainable pace, said Xie.

The standards for low-income subsidy in China vary in different regions. In Beijing, low-income citizens can receive a monthly subsidy of 410 yuan, while a farmer receives 170 yuan a month.

(Xinhua News Agency January 12, 2009)