China has been widely recognized for its achievements in poverty reduction since the adoption of a broad range of economic reforms in 1978. Assisting the remaining poor population requires the continuation of the existing poverty reduction system. The key matter lies not in allocating more funds, but in making more efficient use of available funds, which can be achieved through a number of measures, for instance, to strengthen financial supervision of the use of funds. At present, the poor fiscal situation in some areas results in insufficient resources of poverty reduction activities.