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Warning on misuse of subsidy for poor

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Central authorities have warned provincial governments against embezzling or misappropriating the 4.6 billion yuan (HK$4.3 billion) allocated from state coffers for poverty-stricken urban residents.

The amount, to be provided to deprived urban residents in the form of subsidies to bridge the gap between their income and the official minimum living standard, is double last year's allocation of 2.3 billion yuan.

The surge in the contribution from the central Government indicates that the number of unemployed urban residents living in poverty has been rising rapidly despite repeated claims by central and local authorities that many laid-off workers have been re-employed.

The minimum living standard set by Chinese authorities varies between cities, but on average it is about 100 to 150 yuan a month for central and remote provinces, 200-250 yuan for more developed provinces and 285 yuan for Beijing.

The Government introduced the minimum living allowance in 1997 as the basic urban social security safety net after state enterprises started massive lay-offs amid market reforms.

The plan requires provincial governments to contribute funds to subsidise poverty-stricken families if their income fails to meet the minimum level.

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