Government announces cash subsidies for citizens ahead of China’s National Day

A historic statement has been issued by the government of China on September 25 that the citizens of China who are economically poor will get benefited with the cash subsidy. The National Day of the People’s Republic of China is celebrated on October 1 every year. China is the second most populated country which is facing two important challenges, which includes unemployment and poverty. 

Before the arrival of the 75th anniversary of their National Day, the Ministry of Finance and the Ministry of Civil Affairs have insisted the local authorities distribute the one-off cash handouts to the poor, migrant, orphans, and other disadvantaged groups. But the amount hasn’t been revealed yet.  

This is to show “the party and government’s love and care for people in need,” said the Ministry.

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Before the announcement of the respective Ministry, The Governor of (PBOC) People’s Bank of China has given a preview with the declaration that there are plans to lower the borrowing costs and to increase the money lending by the banks. It resulted in the jump of stock markets in Asia. He also said that the cash which is in reserve at the central bank will be chopped down and this helps to free up the amount of 1 trillion Yuan. Those reserves are also known as Reserve Requirement Ratios (RRR).

With this money the government has planned to distribute it to the poor people to boost the economy of the country. 155 billion Yuan allocated for the people who live an extreme livelihood as a financial assistance and subsidy. The government has also planned for  social security benefits for the students who graduated and didn’t find any job after two years of their graduation. According to the report of the Ministry of Civil Affairs in June, the population of people who are residing in the uttermost poverty is estimated as 4.74 million. The government of China believes that this announcement will boost the staggering economy.