The Chinese government made a promise for increased social spending on Saturday, as high inflation rates and the specter of public protest threatened to slow the Asian nation's booming economy.
In a state of the nation address, Premier Wen Jiabao said the government would boost spending by 12.5 per cent by investing in education, job creation, low-income housing, health care and pensions.
The promises appeared to be aimed as satiating the poorer members of the communist state as whispers spread of a potential peaceful uprising against the ruling class.
In a two-hour speech to nearly 3,000 delegates gathered for the opening of the national legislature's annual session, Wen said plans to close the divisive rich-poor gap and improve living conditions were crucial to forestalling unrest.
"We must make improving the people's lives a pivot linking reform, development and stability... and make sure people are content with their lives and jobs, society is tranquil and orderly and the country enjoys long-term peace and stability," Wen said on Saturday.
A recent jump in consumer prices has caused serious strain on China's poorer citizens. The cost of everyday items rose nearly five per cent in January alone, while food spiked by more than 10 per cent.
In his speech, Wen promised to try to keep inflation below four per cent this year and help those most hit by the cost increases. An ambitious five-year plan would see the economy transform to one driven more by consumption than by state investment bank loans, which would expand spending power.
Wen said the government would take a gradual approach to the change, lest it interfere with recent success that has made China the world's second most influential economy.
The plan for increased social spending comes amid the threat of social unrest, with recent anonymous online messages calling for peaceful weekly rallies similar to those that have toppled autocrats in Tunisia and Egypt.
Beijing's state-run newspaper has warned people that protests would ruin China's prosperity and were being organized by foreigners hoping to lead the country into chaos.
With files from The Associated Press
