BEIJING -- China has allocated 6.5 billion yuan ($1.03 billion) from the central budget to fund the country's shanty town renovation projects, the Ministry of Finance said Monday.

The money will be used to fund the government's shanty town renovation scheme, including the relocation of shanty town residents and construction of new houses and infrastructure facilities, the ministry said in a statement on its website.

The amount brings the central government's total investment to 27.7 billion yuan this year in the scheme, which is expected to benefit 1.9 million urban households nationwide.