China on Thursday announced it had introduced a regulation to better manage state compensation funds. The regulation was signed by Chinese Premier Wen Jiabao Monday and immediately came into effect then.

The regulation is aimed to ensure eligible claimants receive state compensation on time and in full.

The regulation means governments at all levels must budget for state compensation payouts each year, and if the actual amount of state compensation payouts exceed what is budgeted for, additional funds must be used.

The regulation also standardizes the procedure of applying for state compensation.

State compensation refers to government pay outs to citizens for damages it has caused them through infringements of their rights.

The State Compensation Law of China took effect since 1995.