About 16 million Chinese primary and middle school students in poverty-hit regions will receive free textbooks and be exempted from miscellaneous charges in 2005,sources with China's Finance Ministry and Education Ministry said.

The Chinese government also plans to provide subsidies to thoseresident students from needy families, the sources said.

Benefiting from this new policy, the total number of poor students receiving free textbooks across the country will reach 30million this year, up from the 24 million in 2004.

From 2005 to 2007, the central government will arrange a special budget of about 22.7 billion yuan (2.7 billion US dollars)for the education subsidies to poor students. This comes out to about 200 yuan (24.1 US dollars) for each primary student and 340 yuan (40.9 US dollars) for each junior middle school student per year.

According the schedule of the central government, the new policy should be fully implemented in all 592 poor counties by 2007 when education subsidies to each primary student and each middle school student will reach 400 and 540 yuan (48.2 to 65.1 USdollars).

The local education budget should be transferred from guaranteeing teachers' salary and school infrastructure to helpingpoor students finish their studies, according to Zhang Shaochun, assistant minister of finance.

"A reliable assessment system should be established and the distribution of subsidies should be open to the public," said Zhang.

Vice Minister of Education Zhang Baoqing underscored that all relevant departments should tighten efforts to set up a precise data base for each needy student to ensure the distribution of subsidies.

A source with the Ministry of Finance said that China initiatedthe free text book system, funded by the central government in 2001. The system covered 32 percent of students from impoverished families in central and western China.