BEIJING, May 20 (Xinhua) -- Beijing authorities have agreed to increase spending on education starting this year, particularly in outlying regions.

"In the next few years, our annual spending on the education sector is targeted to rise to 40 billion yuan (5.1 billion U.S. dollars), up from last year's 23.5 billion yuan (3 billion U.S. dollars)," said Liu Limin, an official in charge of the Beijing Municipal Education Committee.

Beijing's Party chief Liu Qi had promised, in his report to the ongoing 10th Beijing Municipal Congress of the Communist Party of China, that the city would improve the quality of rural education and provide people with "satisfactory" education.

The top official also said Beijing would strive to meet the central government's goal to ensure education expenditure accounts for four percent of regional GDP.

"I'm confident we can achieve that figure," said Liu, the education official.

Last year, Beijing's 23.5 billion yuan of education spending accounted for about three percent of local GDP, which totaled 772 billion yuan.

"The total amount of expenditure is not the problem in Beijing's education sector. Our problem lies mainly in spending the money in a more rational way and making sure the investment goes to the neediest areas."

Many Beijing primary and secondary schools have had new classrooms, sports grounds and labs built in recent years due to a vigorous injection of funds, but there is a clear gap between rural and urban schools. As well as that, a handful of "key" schools -- equipped with the best facilities and teachers and able to woo top students -- continue to get special treatment.

The good urban schools do not need to worry about retaining teachers, with stacks of teaching applications from new graduates each year.

But teacher retention is a problem in rural as well as most ordinary urban schools, said Liu.

"We're working on new policies to increase teachers' income and provide principals with adequate training to qualify them as good managers of their schools," he said.

Liu did not reveal how much teachers' income would rise, but said the average income of teachers would be at least equal to that of government employees.

"We'll also encourage key schools to set up more branches in outlying areas so that more children can receive better education," he said.

In five years, the city would be providing free compulsory nine-year education to all school age children, he said.

Beijing scrapped school fees for children in the 10 outlying districts and counties last fall.

The move has been applauded by parents and students, but some experts have proposed that Beijing as an international metropolis should extend the period of compulsory education to 12 years from the present nine.

"The average number of years at school for Beijingers lags far behind New York and Tokyo," said Zhang Binxian, a researcher on education policy. "We should extend the compulsory education period by three years, either from nursery school or through senior high school."

China's nine-year compulsory education lasts from primary school through junior high and the government eliminated fees for rural children in 2005.

Beijing government has also pledged 50 million yuan (6.4 million U.S. dollars) to help poverty-stricken students through college.

About 700,000 students are attending Beijing-based universities and colleges, 15 to 20 percent of whom are from poverty-stricken families, said Liu Limin.

The government's new budget will provide about 120 yuan (15.4 U.S. dollars) of subsidies for each needy student.

"We'll ensure all the poor students can afford to drink hot water, take three showers a week and call their homes during holidays," said Liu Limin.