Third, we will support trials of a basic medical insurance system for urban residents. A pilot project for a basic medical insurance system for urban residents will begin in 2007. The project will gradually incorporate urban residents without regular employment into the basic medical insurance program. Poor urban residents in the central and western regions will receive an appropriate subsidy from the central government to cover insurance fees. In addition, we will expand coverage of the basic medical insurance system for the urban employed and ensure that retirees from SOEs that have closed, gone bankrupt or have financial difficulty can participate in insurance programs so that more people can afford medical service.

Fourth, we will improve subsidized medical care for both urban and rural residents. The central government will increase budgetary allocations in 2007 to improve subsidized medical care in rural areas of the central and western regions, run the trials of subsidized medical care in urban areas, promote standardization and institutionalization of this work in both urban and rural areas, gradually increase the level of subsidized medical care, improve the use and management of funds and ease the financial burden of health care for the poor urban and rural population.

Fifth, we will strive to increase the capacity of health care services at the community and village level. We will increase support for the training of staff for rural and urban community clinics and strive to ensure that all the people working in these clinics receive the training they need by 2010. The funding for these training programs will come mainly from both the central and local budgets. In addition, we will set up a system to ensure funding for health care services in urban communities. Beginning in 2007, the central government will provide a subsidy of 3 yuan per person to urban residents receiving medical treatment from community clinics in the central region and 4 yuan per person in the western region to ensure that urban residents have access to safe, efficient, convenient and fast basic health care services, including health education, disease prevention, general health care services, rehabilitation and family planning.

Sixth, we will strongly support revitalization and development of traditional Chinese medicine. In order to revitalize and develop traditional Chinese medicine and take full advantage of its features and advantages, we will strengthen support to foster the development of highly respected personnel, departments and hospitals in Chinese medicine and promote greater use of suitable Chinese medicines and medical techniques at the basic levels of health care. In addition, we will strongly support efforts to strengthen capacity to oversee and manage food and drug safety.

5. We will give high priority to basic problems affecting people's wellbeing and strengthen employment, reemployment and social security work. Addressing problems affecting people's wellbeing is a basic requirement in order to promote social fairness and build a harmonious socialist society. The biggest and most fundamental role of public finance, as the distributor of public resources, is to ensure social fairness and justice.

First, we will increase investment in social security, employment and reemployment work. The central government will spend 201.927 billion yuan in 2007 for social security and employment effort, an increase of 24.699 billion yuan or 13.9 percent over the figure for 2006, which represented a considerable increase over 2005.