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Premier vows support, calls for confidence amid crisis

(Xinhua)
Updated: 2009-03-05 09:08

Massive Plans

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

China's National People's Congress (NPC) starts its annual full session at the Great Hall of the People in Beijing at 9 am March 5, 2009. [Xinhua]

 

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

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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.

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