China's central government will spend 354.3 billion yuan ($52.8 billion) on R&D and science and technology innovation this year, up 13.4 percent year-on-year, Minister of Finance Liu Kun said. The ministry will also increase infrastructure investment by 40 billion yuan year-on-year to 577.6 billion yuan this year, Liu said.

China will increase its fiscal budget for air pollution control to 25 billion yuan ($3.73 billion) this year, up 25 percent year-on-year, said Vice-Minister of Finance Liu Wei.

In addition to increasing spending, the ministry will also take comprehensive measures to tackle air pollution by making institutional innovations to clarify fiscal power and expenditure responsibilities between central and local governments, pushing ahead with reform on environmental monitoring systems, exploring the implementation of emissions trading schemes and improving government green purchasing, he said at a news conference on Thursday.

Last year, the central government's expenditures on air pollution control were 20 billion yuan, four times what they were five years ago. Other special funds worth 40 billion yuan were allocated to promote clean energy development, energy conservation, emissions reductions and the use of new energy vehicles.