Chinese Premier Wen Jiabao outlined key goals for the Chinese Government in 2010 in his government work report on March 5 at the Third Session of the 11th National People's Congress, China's top legislature. Edited excerpts follow:
This year, the main targets we have set for economic and social development are: increasing GDP by approximately 8 percent, creating jobs for more than 9 million people, keeping the urban registered unemployment rate no higher than 4.6 percent, holding the rise in consumer prices to around 3 percent, and improving the balance of payments. In targeting a GDP increase of around 8 percent, we are emphasizing sound development, and we need to guide all sectors to focus on transforming the pattern of economic development and restructuring the economy. By keeping the increase in consumer prices at around 3 percent, we are giving full consideration to the carry-over effects of last year's price changes, the reverberation caused by price changes for major international commodities, the continued impact of increases in domestic supplies of money and credit, and consumers' ability to bear price increases, while also leaving room for reform in resource and environmental taxes and fees and in the pricing of resource products.
This year we will focus on the following eight areas:
1. Exercising better macro-control and maintaining steady and rapid economic development.
We will continue to implement a proactive fiscal policy.
First, we will keep the deficit and government bonds at appropriate levels. This year, we have projected a deficit of 1.05 trillion yuan ($153.7 billion), which consists of 850 billion yuan ($124.45 billion) in Central Government deficit and 200 billion yuan ($29.3 billion) in local government bonds, which will be included in local government budgets.
Second, we will continue to implement the structural tax reduction policy to expand domestic demand and promote economic restructuring.
Third, we will improve the structure of expenditures. We will continue to give preference to agriculture, farmers, and rural areas, and to improve people's well being and develop social programs. We will support energy conservation, environmental protection, innovation, and development in underdeveloped areas.
Fourth, we will effectively improve government debt management.
We will continue to implement a moderately easy monetary policy.
First, we will ensure that there are proper and sufficient supplies of money and credit. This year's target for expanding the broad money supply (M2) is around 17 percent, and we will increase the total quantity of renminbi loans by approximately 7.5 trillion yuan ($1.1 trillion).
Second, we will improve the credit structure, and increase support for important areas and weak links in the credit structure; effectively alleviate the difficulties farmers and small businesses have in obtaining financing; and strictly control loans to industries that are energy-intensive, highly polluting or saddled with overcapacity. We will strengthen post-loan supervision and ensure that loans are used to support the real economy.
Third, we will actively expand direct financing. We will improve the system of multilevel capital markets, increase financing by selling equities and issuing bonds, and better satisfy the diverse demand for investment and financing.
Fourth, we will strengthen risk management.
We will expand consumer demand.
We will continue to increase farmers' incomes, basic pensions for enterprise retirees, allowances to entitled groups, and basic-living guarantee for urban and rural residents, and people's purchasing power, especially low- and middle-income earners.
We will strengthen and expand traditional consumption, and promote the upgrading of the consumption structure by actively cultivating areas of high consumption, such as information, tourism, culture, fitness, training, services for the elderly, in addition to household services.
We will increase consumer credit, strengthen infrastructure, such as the logistics system, and vigorously develop e-commerce. We will also make a better management of markets to create a convenient, safe and worry-free environment for consumers.
We will continue to improve all of our policies and measures for encouraging consumption.
We will strive to improve the investment structure.
Government investment at all levels needs to be concentrated in the most important areas, and the launching of new projects must be strictly controlled. It should be used mainly for progressing and completing projects. We will steadily move forward with the recovery and reconstruction of quake-hit areas, and make sure quality and quantity targets are met. We will encourage greater non-government investment, and improve and implement policies to achieve this goal. We will strengthen and improve the supervision of investment; strictly enforce market entry standards and industrial policies concerning land use, energy conservation, and safety, and effectively prevent redundant construction.
2. Accelerating transformation of the model of economic development, and adjusting and optimizing the economic structure.
We will continue to promote restructuring and revitalization in key industries.