But, some analysts have pointed out that the poverty standard is not the only measure needed in removing poverty.

"The definition of poverty includes many things," Wang was quoted as saying by the 21st Century Business Herald. "In addition to low income, people lacking other basic protections such as education, medical care, and safe drinking water are also regarded as poor."

A government insider told China Daily on Wednesday that the country mainly helps the poor through preferential policies and funds at the local level to improve infrastructure.

"But, more work should be done in improving living conditions, such as road construction, electricity supply and guaranteeing safe drinking water.

"Currently, some poverty-stricken areas are not willing to spend more on the poor even when the local economy is well developed."

Incomes to go up

As part of its new five-year plan, China aims to raise incomes faster across the country and keep them growing at the same pace as the economy and productivity.

This comes from the Communist Party of China Central Committee's Proposal for Formulating the 12th Five-Year Program for China's Economic and Social Development (2011-2015), which was released on Wednesday.

Wages at the lower end of the income scale will increase dramatically and the number of people living in poverty is expected to see a significant reduction, the government said.

The government also stressed the need to work for a more balanced regional development and urbanization over the next five years.

This proposal will have to be approved by the National People's Congress, China's top legislature, when it convenes its annual session next year.