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China tabs nearly $13B for drought relief

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Published: Feb. 7, 2009 at 2:29 PM

BEIJING, Feb. 7 (UPI) -- China's Finance Ministry has set aside nearly $13 billion in reserves for drought relief, the government says.

The government announced that nearly $12.69 billion had been ear-marked for use in those areas hit worst by the ongoing drought, China's official state-run news agency, Xinhua, reported Saturday.

Most of the allocated funds will be used to help Chinese farmers purchase relief materials. A portion, however, has been tabbed to supplement the incomes of grain producers whose crops have been decimated by the drought.

Local governments also will receive funds in addition to previously allocated central government aid, Xinhua reported.

The Office of State Flood Control and Drought Relief Headquarters said in addition to threatening rice and wheat production, the dry weather has left an estimated 4.37 million people without readily available drinking water.

Xinhua said the National Development and Reform Commission has called for increased speed in the completion of water resources projects to combat the drought and its effects.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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