LOOKING INTO THE FUTURE: Chinese Premier Wen Jiabao delivers his government work report during the opening meeting of the Second Session of the 11th National People's congress in Beijing

We have set the following major targets for this year's national economic and social development: Gross domestic product (GDP) will grow by about 8 percent; the economic structure will further improve; urban employment will increase by more than 9 million persons; the urban registered unemployment rate will be held under 4.6 percent, urban and rural incomes will grow steadily; the rise in the consumer price index (CPI) will be around 4 percent; and the balance of payments will continue to improve. It needs to be stressed that in projecting the GDP growth target at about 8 percent, we have taken into consideration both our need and ability to sustain development. In China, a developing country with a population of 1.3 billion, maintaining a certain growth rate for the economy is essential for expanding employment for both urban and rural residents, increasing people's incomes and ensuring social stability.

To implement this package plan, we will concentrate our efforts on the following seven areas:

1. Improving and strengthening macro-control and maintaining steady and rapid economic development.

We will implement a proactive fiscal policy.

First, we will significantly increase government spending. This is the most active, direct and efficient way we can expand domestic demand.

Second, we will carry out structural tax reduction and promote reform of taxes and fees. We will reduce tax burdens on enterprises and individuals by a variety of means such as tax cuts, rebates and exemptions to encourage enterprise investment and consumer spending and invigorate the micro-economy.

Third, we will optimize the structure of government expenditures. We will continue to increase investment in key areas, strictly control regular expenditures, and do everything we can to reduce administrative costs.

We will follow an appropriately accommodative monetary policy.

First, we will improve financial control. Second, we will improve the credit structure. Third, we will improve the mechanism for transmitting monetary policy and guarantee the smooth flow of funds. Fourth, we will strengthen and improve financial oversight and supervision.

2. Actively boosting domestic demand, especially consumer demand, and strengthening the role of domestic demand in driving economic growth.

First, we will expand consumption, especially individual consumption. Second, we will maintain rapid growth in investment and improve the investment structure. Third, we will promote the steady and healthy development of the real estate market. Fourth, we will accelerate recovery and reconstruction of areas hit by the Wenchuan earthquake.

3. Consolidating and strengthening the position of agriculture as the foundation of the economy, and promoting steady development of agriculture and continuous increase in rural incomes.

We will focus on the following five areas. First, we will steadily develop grain production. Second, we will adjust the agricultural structure based on market demand. Third, we will intensify development of agricultural infrastructure and projects designed to improve the lives of rural people. Fourth, we will increase rural income in a variety of ways. Fifth, we will intensify our efforts to alleviate poverty through development.

We will take the following measures to comprehensively strengthen our work related to agriculture, rural areas and farmers.

First, we will greatly increase funding for agriculture and rural areas. Central Government allocations for agriculture, rural areas and farmers will total 716.1 billion yuan ($105.3 billion) this year, a year-on-year increase of 120.6 billion yuan ($17.7 billion).

Second, we will significantly raise minimum grain purchase prices and keep the prices of agricultural products stable at a reasonable level to encourage farmers to grow more. This year the floor price for the purchase of wheat and rice will be increased by 0.22 yuan ($0.03) and 0.26 yuan ($0.04) per kilogram on average, respectively.

Third, we will further increase agricultural subsidies. The Central Government funding for these subsidies will total 123 billion yuan ($18.1 billion), an increase of 20 billion yuan ($2.9 billion) over last year.

Fourth, we will speed up development of a new system under which various sectors of society provide services for agriculture.

Fifth, we will stabilize and improve the basic rural operation system.

4. Accelerating transformation of the pattern of development and actively promoting strategic economic restructuring.

We will focus on improving industrial restructuring in order to maintain economic growth and promote industrial upgrading.

First, we will conscientiously implement plans for adjusting and invigorating key industries such as the automobile, steel, shipbuilding, petrochemical, textile, nonferrous metals, equipment manufacturing, information technology, modern logistics and light industries.

Second, we will energetically adjust the structure of enterprises and carry out mergers and reorganizations. We will support superior enterprises in acquiring ones that are backward or have financial difficulties.

Third, we will take more effective measures to support development of small and medium-sized enterprises.