This priority work will enact measures to cope with rising food and consumer goods prices, to ensure an adequate basic living standard for low-income urban residents, said an official from the Ministry of Civil Affairs recently.

There are four main procedures to be enacted:

Firstly, to adopt appropriate measures based on the current situation. In-depth investigations and detailed figures are needed for analysis to see how many difficulties rising prices of basic consumer goods has brought to low-income families. Departments of civil affairs at different levels should become aware of this situation and follow its development, devise possible actions, and put forward effective solutions.

Secondly, to ensure the basic living standard of the low-income families. If the rising of food prices, along with other necessary consumer goods, has caused difficulties for families, the local governments should guarantee a minimum subsidy increase of 15 yuan (US$2) per person per month by raising the minimum living standard, either by increasing the subsidy or allotting a temporary allowance. In places where financial conditions are better, the subsidy could be higher. The subsidy should be released no later than August. Local governments must guarantee that the beneficiaries would receive their subsidies before the end of August. Additionally, the central finance committee will grant more subsidies in the central and western regions because they are known for their severe financial difficulties.

Thirdly, to further guarantee the living standard of special groups. The government is to allot special care to the people who have lost their ability to work, those who have no relatives and no source of income, severely disabled people and infirm patients who can no longer work; and to ensure high-level financial assistance to the elderly, patients with chronic disease, minors in single-parent families and indigent students enrolled in compulsory education.

Fourthly, to establish and perfect a temporary aid system. Those who are qualified for the temporary aid includes families whose incomes are near the minimum living standard and families who have encountered temporary financial difficulties caused by special reasons. The local governments should set up a plan to implement this system and collect funds to help these families near the minimum living standard because they are experiencing difficulties due rising prices.

According to the official, the Ministry of Civil Affairs and the Ministry of Finance released a joint notice on August 7, requesting that all the local governments secure an increase of at least 15 yuan (US$2) in subsidies per person per month for those who are now existing at the minimum living standard. On August 10, the central government allocated 1.11 billion yuan (US$147 million) of subsidy funds toward low-income people.

To date, most of the regions in China have been granted temporary subsidies. Other areas have either increased their subsidy or raised the minimum living standard, thus somewhat relieving difficulties associated with rising food prices for the low-income group.

(China Development Gateway by Xu Lin September 8, 2007)