Children at a school in Tibet proudly show off their free text and exercise books yesterday. The central government has allocated 9.2 billion yuan (US$1.2 billion) in education funds for the spring semester, of which 1.4 billion yuan will cover free textbooks for needy students.- Xinhua

The future of any country rests on education, and China is well aware of that, making it a "strategic priority" - and backing it up with a massive injection of cash.

Premier Wen Jiabao yesterday announced a total of 85.85 billion yuan (US$11 billion) will be allocated from the central budget this year, an increase of a whopping 41.7 percent over the previous year.

Part of the central educational fund will be used to grant more poor students the access to education, said Wen while delivering a government work report to the annual parliamentary session.

"This is another major move we are taking to promote fairness in education following the exemption of all tuition and miscellaneous fees for rural students receiving compulsory education," said Wen, addressing the 2,890 deputies to the National People's Congress.

A system of national scholarships and tuition assistance will begin this semester, which starts in early March, for colleges and vocational schools.

The central government fund appropriated for this purpose will be 9.5 billion yuan this year, and 20 billion yuan next year, and local governments are required to allocate corresponding amounts from their budgets.

"Education is the bedrock of China's development, and fairness in education is an important form of social fairness," said Wen.

The country will further implement the national student loan system. In another major incentive, Wen said China will grant free education for students majoring in education in teacher colleges.

And rural areas have not been forgotten.

"This year, we will stop collecting tuition and miscellaneous fees from all rural students receiving compulsory education," said Wen.

NPC deputies, many from the countryside, hailed the move with loud applause.

In addition, the government will continue to provide free textbooks for poor rural students and living allowances for rural boarding students, the premier said.