China plans to spend 32 billion yuan (4.68 billion U.S. dollars) on the reconstruction of parts of northwest China's Qinghai Province battered by a 7.1 magnitude earthquake in April, the government said Sunday.

The money would mainly came from the central budget, supplemented by funds from the Qinghai government, donations and corporate funding, according to a circular published on the government's website, www.gov.cn.

The main reconstruction tasks should be essentially finished in three years, according to the circular.

It said that the government would also cut taxes for companies and financial institutions in the region to back rebuilding of infrastructure and homes, and create jobs, the circular said.

Lenders would be also encouraged to expand credit to the area, and local lenders would have favorable deposit reserve requirements.

The deadly earthquake, which occurred on April 14 this year, had killed 2,698 people and left 270 missing as of May 30, the circular said.

The Yushu Tibetan Autonomous Prefecture in the province was the hardest hit.