Report on the Work of the Government
Delivered at the Third Session of the Eleventh National People's Congress on March 5, 2010,
Wen Jiabao, Premier of the State Council
On behalf of the State Council, I now present to you my report on the work of the government for your deliberation and approval. I also invite the members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) to provide comments and suggestions.
I. Review of Work in 2009
The year 2009 was the most difficult year for our country's economic development since the beginning of the new century. This time last year the global financial crisis was still spreading, and the world economy was in a deep recession. Our economy was severely affected; our exports decreased significantly; a large number of enterprises had operating difficulties, and some even suspended production or closed down; the number of unemployed people increased significantly; many migrant workers had to return to their home villages; and the pace of our economic growth suddenly slowed down. In these unusually difficult circumstances, the people of all our ethnic groups fortified their confidence, tackled difficulties head on, worked tenaciously, and responded calmly to the impact of the global financial crisis under the firm leadership of the Communist Party of China (CPC). Our economy was the first in the world to have made a turnaround, and we made major new achievements in reform and opening up as well as socialist modernization. GDP reached 33.5 trillion yuan, an increase of 8.7% over the previous year (here and below). Fiscal revenue was 6.85 trillion yuan, up 11.7%. Grain production was 530.82 million tons, a new record and an increase for the sixth consecutive year. A total of 11.02 million urban jobs were created. The per capita disposable income of urban residents was 17,175 yuan, and the net per capita income of rural residents was 5,153 yuan, up 9.8% and 8.5% respectively in real terms. We took another steady step along the path of building a moderately prosperous society in all respects. Events again proved that no difficulties or obstacles can impede the course of the great rejuvenation of the Chinese nation.
The past year was truly extraordinary and inspiring. We held a grand celebration of the 60th anniversary of the founding of New China. The outstanding achievements we made in that time have greatly boosted the confidence and pride of the people, strengthened the cohesiveness of the Chinese nation, and raised China's international standing and influence. All this definitely encourages us to continue to forge ahead on the path of socialism with Chinese characteristics.
Over the last year, we mainly undertook the following work.
1. Strengthening and improving macro-control and promoting steady and rapid economic development. We carried out a proactive fiscal policy and a moderately easy monetary policy. We comprehensively implemented and constantly improved the package plan for addressing the global financial crisis. We significantly increased government spending, implemented structural tax reductions, rapidly increased supplies of money and credit, made our monetary policy more sustainable, and increased the amount of direct financing. We thus ensured funding for economic and social development, effectively boosted domestic demand, and quickly reversed the slowdown in economic growth.
We vigorously expanded consumer spending. Our policies to encourage consumption covered more areas, were stronger and benefited more people than ever before. The central government provided 45 billion yuan in subsidies for rural residents to purchase home appliances and motor vehicles, including motorbikes. Part of the subsidies also supported trading-in old motor vehicles and home appliances for new ones and purchasing agricultural machinery and tools. We halved the purchase tax on small-displacement automobiles. We reduced or exempted taxes on buying and selling homes to support the purchase of homes to be used as their owners' residences. Throughout the year 13.64 million motor vehicles were sold, an increase of 46.2%; commodity housing sales amounted to 937 million square meters, up 42.1%; and total retail sales of consumer goods increased 16.9% in real terms. Consumption played a much bigger role in fueling economic growth.
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