BEIJING - A subsidy of 130.58 billion yuan ($21.35 billion) has been given to support compulsory education mostly in rural areas, said a Ministry of Finance statement on Wednesday.

The volume marked a rise of 6.6 percent, or 8.09 billion yuan, from last year, said the statement.

China requires children to receive nine-year compulsory education with the age range normally from 6 to 15.

The subsidy was allocated from the central government's budget. A large part of the subsidy will go to schools in the central and western regions in renovating school buildings and dormitories and raising teachers' salaries.

Compared with last year, China will increase 200 yuan per square meter to support school building renovations and offer 40,000 yuan more for each teacher on their annual payments.

Embezzlement of the fund will be severely punished, said the ministry.