More than 100 counties were involved in the wrongdoing, the report found.
In 66 counties, nearly 2 billion yuan in all were directly misappropriated to settle government debts and basic social insurance.
In 41 others, a total of 270 million yuan was siphoned off by lowering meal standards or fabricating purchases across 1,533 schools, the report said. Other counties colluded with suppliers, some of whom provided substandard material, for kickbacks or “donations”.
Research shows that providing school meals in impoverished areas can play a key role in reducing malnutrition among children, as well as improving cognitive abilities, academic performance and student enrolment rates. Several other developing economies have also adopted similar plans.
Starting in 2011, the central government budgeted 16 billion yuan annually towards a 3 yuan daily subsidy per rural student. This was raised to 5 yuan in 2021.
The scheme currently covers nearly 1,570 counties across 28 provinces and regions, benefiting hundreds of millions of students, according to the report.
Some local governments failed to follow protocol when bidding for suppliers, the audit report said, citing 52 suppliers appointed for more than 2,600 schools. Supervising departments and school staff bent the law for personal gain, it stated.
Local government debt amounted to 40.7 trillion yuan by the end of last year – the result of a building frenzy funded by state financing vehicles, state-owned enterprises and banks starting in 2008.
Beijing has asked both central and local government agencies to prioritise the use of funds to support livelihoods, pensions and construction projects.
