According to the statement, the rebuilding will mainly rely on 9 billion yuan (1.32 billion U.S. dollars) from the central government in the first year.
The money, along with local funds and donations, will be managed by the local government in Qinghai in accordance with the demands of various projects and their priority level.
The State Council urged the Qinghai provincial government and other departments to carefully organize and coordinate the reconstruction work.
It also urged authorities map out scientific plans to ensure supervision of the use of funds and the quality of of reconstruction projects.
The meeting was presided over by Premier Wen Jiabao.
Also on Wednesday, the Ministry of Education said 5,074 local middle school students will voluntarily transfer to seven other regions to resume their studies as teaching resources and space in the quake zone are inadequate.