The aid funds in our country fall into three categories:financial aid funds,relief funds and credit funds.Although the three
fund differs from each other in the respective proportion it covers in the total fund,they benefit mutually in operation.After1996,relief fund is brought into financial budgetary expense;and thus falls into the category of financial fund,Analyzing the distrbution of the three funds,75%of the credit fund is employed in those industrial
projects and small town enterprises which are capable of repaying the credit;90% of the relief fund is used in such public facilities and undertakings as transportation,bridge,the erection of electric wire for agricultural use and water conservancy projects;the few remaining funds of these two categories,together with the financial--aid funds are put into circulation in such areas as planting & breeding indstry,capital construction on farmland,ecology construction,the spread of science and technology,depressing enterprises,cultural,educational and hygiene causes and other aid projects.Financially Speaking,these projects depend mainly on financial fund,which plays a much more vital role than lther funds in poverty mitigation.This conclusion can be drawn by taking for example of financial aid funds
distribution in Chifeng city.