Dozens of Rural Governments Shortchange Student Meals to Shore Up Budgets

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Students from a town in Bijie City

Dozens of China’s cash-strapped local governments misappropriated billions of yuan earmarked for rural student meals from 2021 to 2023 to repay debt and boost other spending, a national audit report showed.

Of the roughly 23 billion yuan ($3.16 billion) in special funds that the central government handed out to 159 counties from 2021 to August 2023, 66 counties diverted more than 1.9 billion yuan for debt repayments and other local spending, according to a State Council report released last week.

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From 2021 to August 2023, 66 counties in China diverted over 1.9 billion yuan from rural student meal funds for debt repayments and other uses.
A total of 270 million yuan meant for student meals was redirected by reducing meal quality or fabricating procurement in more than 1,500 schools.
The Nutrition Improvement Program has benefited 386 million students across 28 provinces, with a yearly investment of 20 billion yuan for student lunch subsidies.

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What Happened When

2021：: Start of the period during which local governments misappropriated funds earmarked for rural student meals.

August 2023：: End of the period during which 23 billion yuan was distributed to 159 counties, of which 66 counties diverted more than 1.9 billion yuan.