China had allocated 6.5 billion yuan ($1.02 billion) from the central budget to fund the country's shantytown renovation projects, the Ministry of Finance said on July 22.

"The money will be used to fund the government's shantytown renovation scheme, including the relocation of shantytown residents and construction of new houses and infrastructure facilities," the ministry said in a statement.

The amount brings the Central Government's total investment in the scheme to 27.7 billion yuan ($4.34 billion) this year. The plan is expected to benefit 1.9 million urban households nationwide.