BEIJING, Jan. 31 (Xinhua) -- The central government allocated a record 3.7 billion yuan (about 500 million U.S. dollars) in 2006 and 2007 for food and drug supervision, more than the total budget from 1998 to 2005, the country's pharmaceutical watchdog said on Wednesday.

    As a result, 90 percent of drug control departments at the provincial level and 60 percent at the city level were capable of conducting full-scale drug tests, said Li Yunlong, head of the National Institute for the Control of Pharmaceutical and Biological Products.

    China had allocated 1.6 billion yuan to build and equip local offices for food and drug supervision in 24 provinces, autonomous regions and municipalities in central and western areas over the past two years.

    Shao Mingli, head of the State Food and Drug Administration (SFDA), said that the administration would improve all stages of the drug supervision process, including production, transfer, pricing, selling and use, to reduce consumer costs and keep fake drugs off the market.