Page 34 - REPORT ON THE WORK OF THE GOVERNMENT

These efforts will set the stage for building a modern socialist country in all
respects.

The main projected targets for development this year are as follows:
 GDP growth of around 5 percent;
 around 12 million new urban jobs;
 surveyed urban unemployment rate of around 5.5 percent;

 CPI increase of around 3 percent;
 growth in personal income that is generally in step with economic growth;
 steady increases in both the volume and quality of imports and exports;
 a basic equilibrium in the balance of payments;

 grain output of over 650 million metric tons;
 continued reductions in energy consumption per unit of GDP and in the
discharge of major pollutants, with priority on controlling fossil fuel
consumption; and
 steady improvements in the quality of the eco-environment.

This year, it is essential to prioritize economic stability and pursue progress
while ensuring stability. Confronted with a situation in which strategic
opportunities, risks, and challenges are concurrent and uncertainties and
unforeseen factors are rising, we should keep our policies consistent, stable, and

targeted and see that they are carried out in a more coordinated way to create
synergy for high-quality development.
We should enhance the intensity and effectiveness of our proactive fiscal policy.
A deficit-to-GDP ratio of 3 percent has been projected for this year. We should

improve preferential tax and fee policies, and extend and further refine policies on
tax and fee cuts, tax rebates, and tax deferrals as the situation requires. We should
see that at the primary level, basic living needs are met, salary payments are
ensured, and normal government functioning is maintained.

We should do more to implement a prudent monetary policy in a targeted way.
The M2 money supply and aggregate financing should increase generally in step
with nominal economic growth to provide support for the real economy. The RMB
exchange rate should be kept generally stable at an adaptive, balanced level.
In adopting industrial policies, we should give consideration to both

development and security imperatives. We should promote the transformation and
upgrading of traditional industries, cultivate and strengthen strategic emerging
industries, and take forceful steps to shore up weak links in industrial chains.

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