China’s ‘two sessions’: US$24 billion to be spent on coronavirus control despite end of zero Covid policy

170 billion yuan will go towards subsidising local governments as China tackles Covid-19 as a Category B disease, budget tabled at NPC says

First Covid-related funding revealed since the pandemic hit comes after several local governments reported huge zero-Covid bills

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Mass testing is among Covid-19 containment measures to have weighed on local government finances in China. Photo: Reuters

Published: 6:00am, 6 Mar 2023

China has budgeted 170 billion yuan (US$24.6 billion) for Covid-19 control this year, in spite of dropping nearly all pandemic restrictions in a pivot to living with the virus.

A draft budget tabled at China’s top legislature said the funds would go towards subsidising local governments, especially those at the county-level, for Covid-19 prevention and control activities.

The total amount would include 30 billion yuan in carry-over funds from last year, according to the Ministry of Finance’s report to the National People’s Congress (NPC) on Sunday.

The NPC, China’s top legislative body, is expected to vote on the budget on March 13, the last day of its annual session.

The funding will guarantee subsidies for ad hoc payments to medical workers and vaccination expenses, and extend existing subventions for treating Covid-19 patients.

It will also be used to cover personal burdens on Covid-19 hospitalisation bills beyond that assured by public health and major disease insurances, as well as medical aid schemes.