Source: CCTV.com

03-05-2009 11:13

Special Report:   2009 NPC & CPPCC Sessions

China has set a target for an 8 percent GDP growth rate as the country faces it's most difficult year for economic development. This will require doing everything necessary to stimulate employment. Chinese Premier Wen Jiabao has just presented his government work report, outlining the economic policies and other tasks for the government during the opening of the annual National People's Congress session.

Wen Jiabao, Chinese Premier, says that GDP will  grow by about 8 percent.（China.org.cn Photo)

China is under the spotlight as the government is presenting its policies to respond to the global financial crisis.

In his work report, Premier Wen Jiabao set targets for economic and social development.

Wen Jiabao, Chinese Premier, says, "GDP will grow by about 8 percent. In projecting the GDP growth target, we have taken into consideration both our need and ability to sustain development."

China's economy is facing a tough test since its GDP growth rate has significantly dropped over last year. But Wen Jiabao believes the slowdown is beginning to bottom out and the economy will be able to rebound with huge government investment.

A 4-trillion-yuan stimulus package is already in the annual central budget. It has been submitted to the NPC for deliberation and is expected to pass. The funds will focus on infrastructure for agricultural production and in rural areas.

Wen Jiabao says, "massive government investment will be launched. The country will invest 4 trillion yuan in 2 years, for which the central government has already pledged 1.18 trillion yuan.”

Premier Wen Jiabao also outlined China's major tasks for 2009. He says the priority is to boost development. Especially an active fiscal policy to expand domestic demand. He says the country will also boost agricultural productivity. And this in turn will increase the income of farmers. The government will also strengthen macro-control, boost domestic demand and also deepen the country's reform and opening-up process.

Wen said China fiscal deficit budget would be 950 billion yuan for 2009. That's a record high over the past six decades. This comes as the country boosts spending to cushion the impact of the global financial crisis.

Meanwhile, the State Council will also allow local governments to issue 200 billion yuan worth of government bonds through the Ministry of Finance. These funds will go into provincial budgets.

During his government work report, Premier Wen also reaffirmed that the country would continue its active fiscal policies and moderately easy monetary polices.

Click for more news in Biz China>>

 

Editor:Qin Yongjing