2) The total allocation for education is 198.062 billion yuan, an increase of 38.208 billion yuan or 23.9%. Funds totaling 66.25 billion yuan have been allocated to increase support for expenses incurred in operating compulsory education in rural areas, an increase of 16.1%. On the basis of the policy of exempting rural students from paying tuition and miscellaneous fees, supplying them with free textbooks, and providing poor on-campus students with living expenses, the public spending per primary and secondary school student will reach the levels specified by the central government, i.e. 300 yuan for a primary school student, and 500 yuan for a junior secondary school student. We will carry out a project to improve the safety of the buildings in rural primary and secondary schools providing compulsory education. An allocation of 5.77 billion yuan has been earmarked to exempt urban students in compulsory education from tuition and other education-related expenses, an increase of 44.9%. We will assist migrant workers in urban areas in ensuring their children receive school education. The central government has allocated 12 billion yuan to implement the performance-based salary system for teachers in compulsory education. A total of 13.7 billion yuan has been allocated to develop county-level vocational education centers and demonstration secondary vocational schools, accelerate renovation of the buildings in rural junior secondary schools in the central and western regions, and improve the auxiliary facilities in ruralschools with student dormitories. Subsidies totaling 4.5 billion yuan, an increase of 115.3%, will be used to continue supporting development of state-level demonstration vocational colleges and practical workshops for vocational education and to gradually make secondary vocational education free in rural areas. Twenty-four billion yuan has been allocated for assistance to students from poverty-stricken families and for state education assistance loansand subsidies. Expenditures in higher education will total 50.255 billion yuan to continue developing high-quality universities and key disciplines.

3) Spending on medical and health care will total 118.056 billion yuan, an increase of 32.611 billion yuan or 38.2%. We will deepen reform of the pharmaceutical and health care system. Beginning in 2009, we will carry out five major tasks in the next three years to establish systems for guaranteeing basic medical services. We will improve the new rural cooperative medical care system, complete the establishment of a basic medical insurance system for non-working urban areas, and raise the level of both central and local government assistance to 80 yuan per capita. The central government has allocated 30.4 billion yuan for this purpose. The central government will help resolve the problem of retirees from local state-owned enterprises closed or forced into bankruptcy pursuant to policy in participating in basic medical insurance for urban workers, and further help resolve the problem of retirees from state-owned enterprises that are or used to be under the central government and have been closed or forced into bankruptcy pursuant to policy and from local state-owned enterprises forced into bankruptcy pursuant to policy in participating in such insurance. Subsidies totaling 6.45 billion yuan have been allocated to provide better medical assistance services for urban and rural residents. The basic framework will be set up for a national system for basic drugs so that patients have access to safe and affordable drugs. Subsidies totaling 16.53billion yuan have been allocated to improve the community-based medical and health service system, focusing on support for the establishment of 29,000 town and township hospitals and the improvement, expansion or construction of 5,000 central town and township hospitals, and to support urban community health clinics and town and township hospitals in purchasing medical equipment. An allocation of 24.6 billion yuan in subsidies will be used to improve prevention and control of major communicable diseases and other public health work. Local governments will receive support in providing certain basic public health services for urban and rural residents free of charge. The trial reform of publicly established hospitals will be extended.

4) Expenditures for the social safety net and employment will total 335.069 billion yuan, an increase of 60.71 billion yuan or 22.1%. Improving the social safety net is an important basis for improving the people's wellbeing as well as an important measure for responding to the difficulties currently facing the country and expanding consumer demand. Spending on the social safety net will total 293.049 billion yuan, an increase of 43.898 billion yuan or 17.6%. A total of 54.08 billion yuan, an increase of 48.9%, has been allocated to raise the per capita monthly cost of living allowance by 15 yuan for urban residents and 10 yuan for rural residents. Ten billion yuan has been set aside so the government can award a one-time subsidy before Spring Festival to the more than 75.7 million urban and rural residents who receive subsistence allowances, as well as childless and infirm rural residents who receive subsidies for food, clothing, medical care, housing and burial expenses throughout the country. A total of 139.241 billion yuan has been allocated to raise the level of basic pension benefits for retirees from state-owned enterprises by about 10% of the average monthly per capita benefits of 2008, with a focus on special groups, and the central and western regions and northeast China and other old industrial areas will receive assistance from the central government as required. A total of 17.512 billion yuan has been allocated to raise allowances for some entitled groups as needed and to provide allowances and living subsidies for entitled groups. We will continue to support the policy-mandated closure and bankruptcy of state-owned enterprises, promote the pilot project for reforming collectively owned factories in northeast China, the central region and some central government enterprises, and support improvements in working and living conditions for people relocated to build reservoirs.