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China's reform in rural areas, having made remarkable progress in the last 30 years, serves the joint purposes of safeguarding farmers' material interests, democratic rights and developing productivity.

Chinese Premier Wen Jiabao made these remarks at a national conference on rural reform that closed on Saturday.

The scrapping of China's agricultural tax marked a new stage in the nation's rural area reform, and the efforts of the government will continue as institutional reform will deepen at township level as well as financial reform for both towns and counties.

With local governments' coffers feeling the absence of the agricultural tax, China's central, provincial and city governments set aside more than 100 billion yuan (US$12.5 billion) this year to make up for these fiscal losses, according to official figures..

Wen added that comprehensive rural reform would encompass political, social and cultural aspects as well as economic ones.

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

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

By the end of next year, the country will exempt primary and junior high school students in rural areas from tuition and other education expenses, so as to allow every child access to compulsory education, he said.

Rural teachers' salary must be included in governmental budgets, and should be guaranteed, he said, prohibiting the re-emergence of random charging of rural students under various excuses.

Wen also stressed the importance of allowing villagers self-government and that implementing this at grassroots level would be vital in building a new countryside.

(Xinhua News Agency September 4, 2006)