NPC,  CPPCC Annual Sessions 2009

   BEIJING, March 5 (Xinhua) -- Chinese Premier Wen Jiabao Thursday called on the nation to strengthen conviction for victory as he announced an unprecedented package plan to keep economic growth amid a global downturn.

    Delivering a work report to the National People's Congress (NPC), the country's parliament, Wen said he believes the country will be able to keep its economic growth at about 8 percent in 2009 despite worsening world economy.

    Wen acknowledged that 2009 will be the most difficult year for China's economic development since the new millennium, but he said the projected growth rate was proposed based on China's need and ability.

    "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," Wen told nearly 3,000 NPC deputies gathering in the Great Hall of the People in downtown Beijing.

    "As long as we adopt the right policies and appropriate measures and implement them efficiently, we will be able to achieve this target," he said.

    Other key economic and social targets included creating more than 9 million jobs in cities, controlling urban registered unemployment rate under 4.6 percent and keeping the rise of Consumer Price Index (CPI) at about 4 percent.

    Listing key government tasks, Wen said the focus this year is to sustain economic growth, improve people's well being and maintain stability.

    MASSIVE PLAN

    To deal with the global financial crisis and promoting steady and rapid economic development is "a high priority of the government," he said.

    "Continuous drop in economic rate due to the impact of the global financial crisis has become a problem affecting the overall situation," Wen said.

    In his 35-page work report, Wen outlined a massive package plan, which included huge government investment, tax reform, industrial restructuring, scientific innovation, social welfare and promoting employment.

    As demand on international markets continues to shrink, Wen said the government will adopt "a proactive fiscal policy" and significantly increase government spending to expand domestic demand.

    The government has proposed a 4-trillion yuan (585.5 billion U.S. dollars) two-year investment plan, for which the central government has pledged 1.18 trillion yuan.

    Wen said a total of 908 billion yuan of the central government investment this year will go to projects aiming at improving people's lives, Wen said.

    Those projects covered low-income housing, education, heath care and culture, energy conservation, environmental protection, technology innovation, key infrastructure construction and post-earthquake reconstruction.

    "We must channel government investment to areas where it best counteracts the effects of the global financial crisis and to weak areas in economic and social development, and no government investment will be made in the regular processing industries," Wen said.

    Economists have pointed that China's 2-trillion U.S. dollar foreign reserves, current-account surplus and budget surplus offers the government lots of room to boost spending.

    As part of the efforts to shore up domestic demand, Wen said China will also increase investment to improve China's social security network, whose low coverage has long be blamed for China's high saving rate.

    "This year we will concentrate on accomplishing major tasks that are urgently needed in economic and social development and directly related to the vital interests of the people to improve well being," Wen said.

    He said the central government plans to spend 293 billion yuan on the social safety net this year, up 17.6 percent or 43.9 billion yuan over the estimated figure for last year.

    The money will be used to fund social welfare programs, including pension, medical insurance, unemployment insurance and living allowances to low-income groups.

    The premier also unveiled details of a long-awaited health care reform plan, which aims to provide a universal primary medical service to the country's 1.3 billion people.

    Governments at all levels will invest 850 billion yuan in the next three years, including 331.8 billion yuan from the central government.

    Efforts will also be made to create more jobs.

    Earlier official figures show about 15.3 percent of the 130 million migrant workers had returned jobless from cities to the countryside against the backdrop of the global economic downturn. Meanwhile, another 6.11 million college students are due to graduate this year.

    Wen said the government will do everything in its power to stimulate employment.

    Wen said the government will make full use of role of the service sector, labor-intensive industries, small and medium-sized enterprises, and the non-public sector of the economy in creating jobs. The central government will allocate 42 billion yuan.

    In response to increasing difficulty of maintaining steady agricultural development and increasing rural income, Wen said the central government will allocate a total of 716.1 billion this year in agriculture, rural areas and farmers, a year-on-year increase of 120.6 billion yuan.

    As social uncertainty increases against the backdrop of slowing economy, Wen also promised that his government will improve efficiency and its ability to "manage overall economic and social development".

    He also promised continuous efforts to combat corruption to promote clean government.

    "We must discharge our duties with great diligence and, through our actions and achievements, build a government that is for the people and is pragmatic, clean, efficient to satisfy people's needs and win their trust," he said.