These measures intend to target the poor, particularly the unemployed and financially unsound persons in these hard times. The move comes after pressure from the central government on local authorities to ramp up fiscal assistance to households in short-term needs during peak periods of holidays since the economic downturn will be long in the country.
Earlier in the New Year and soon to arrive, bright festive occasion, local governments which possess the means are being advised by the ministry to distribute relief money or one-off allowances to eligible beneficiaries, as presented in a circular from the Ministry of Civil Affairs. Such was advocated before a significant holiday in September for extremely poor and poorly situated people.
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The unemployed have no unemployment insurance; jobless graduates, persons in ill health, and families that are financially distressed are included in construction on support during these difficult times. From January to November, in the unemployment insurance scheme in China, payments of 160.07 billion yuan ($21.93 billion) were dispensed during the period – which equals a year-on-year increase of 25.5%.
Local governments were, therefore, tasked to identify low-income groups closely. The World Bank, meanwhile, also indicated that China’s poverty reduction momentum could slow down and forecast it would decelerate further by 2025 and 2026 as economic growth would also be slower. Brown bagging is seen as a ticket to the growth recovery next year, as policymakers are already cooking a scheme to revive the demand side.