On October 8, the Chinese Government vowed to reinforce management of public funds used for social programs, such as funds for poverty-relief.

According to a statement released by the State Council, recent audits have found that some localities falsified eligibility information when claiming the funds, embezzled them or otherwise failed to channel the funds to those they were intended for, at the same time implementing weak supervision over their use and allocation.

To effectively manage such funds, the government decided to clarify the responsibilities of authorities at different levels. County-level governments are responsible for assigning funds to various poverty-reduction projects, while provincial and city governments should act as supervisors.

Individuals in need of poverty relief will be entered into a database so that funds can be distributed to villages and households identified by authorities.

Innovative fund management strategies, such as governmental procurement of social services using the funds and financial institution involvement in poverty reduction projects, were encouraged, the statement said.