China will press ahead with reforms to better safeguard farmers' interests and rights and develop the rural economy, Premier Wen Jiabao pledged in remarks released yesterday.

The annulment of agricultural tax this year marks a new stage of reforms in rural areas, and the government will continue to deepen institutional reform at township level and financial reform at county and township levels, Wen told a two-day national conference on rural reform which ended on Saturday.

China's central, provincial and city governments have set aside more than 100 billion yuan (US$12.5 billion) this year to make up for lost income of grassroots governments in the tax reform aimed at easing the burden of farmers, according to official figures.

Reforms in rural areas involve not just money but also political, social and cultural aspects, the premier emphasized.

"We should strive to complete institutional reform at township level, and reform of rural compulsory education and financial reform at county and township levels in five years or so," he said.

On institutional reform at township level, Wen stressed the importance of altering the functions of government, streamlining staff, reducing expenditure and improving administrative efficiency.

By the end of next year, primary and junior high school students in rural areas will be exempted from tuition and other education expenses, so that every child can have compulsory education, he said.

Rural teachers' salary must be included in government budgets to prevent the re-emergence of random levying of fees under various guises, he said.

Self-governance for villagers and expansion of grass-roots democracy are also important tasks in building a new countryside, Wen said, stressing the importance of democratic elections, decision-making, management and supervision.

(China Daily 09/04/2006 page1)