China has established a system to peg basic living guarantee allowances for low-income groups to consumer prices.

Local governments should take the basic subsistence costs, local Engel's coefficient or the expenditure-income ratio, into account when setting their own allowance standards, said a circular jointly issued by the Ministry of Civil Affairs, the National Development and Reform Commission, Ministry of Finance and the National Bureau of Statistics on May 18.

Local plans of setting and adjustment of allowance standards, approved by local governments, should be published via websites, newspapers and other media for the public, the circular said.