New stimulus move from China: 22 billion dollars to be given to the poor

China has added a new step to its measures to stimulate economic activity.

According to a report broadcast by state television CCTV, the Chinese Ministry of Finance and the Ministry of Civil Affairs will provide state aid to disadvantaged groups, including the extremely poor and orphans, ahead of the National Day holiday next week.

According to the report, local authorities are required to deliver the aid before October 1, the anniversary of the founding of the People's Republic of China, to demonstrate the party and government's concern for people in need.

22 BILLION DOLLAR BUDGET

The government had long been refraining from the policy President Xi Jinping calls "common prosperity."

The news of the one-time aid came shortly after the country's top monetary and financial officials announced a series of interest rate cuts and easing measures aimed at halting the economic slowdown.

According to a note published by the government in April, the ministries allocated a budget of 154.7 billion yuan (22 billion dollars) this year for financial aid and subsidies for people living in extreme poverty, orphans, and the homeless. According to the Ministry of Civil Affairs, as of June, 4.74 million people in the country are living in extreme poverty.

News Source: 12punto