REPORT ON THE WORK OF THE GOVERNMENT.docx

REPORT ON THE WORK OF THE GOVERNMENT.docx

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REPORTONTHEWORKOFTHEGOVERNMENT

REPORTONTHEWORKOFTHEGOVERNMENT

DeliveredattheFourthSessionoftheEleventhNationalPeople'sCongressonMarch5,2011

WenJiabao

PremieroftheStateCouncil

FellowDeputies,

OnbehalfoftheStateCouncil,Inowpresenttoyoumyreportontheworkofthegovernmentforyourdeliberationandapproval.IalsoinvitethemembersoftheNationalCommitteeoftheChinesePeople'sPoliticalConsultativeConference（CPPCC）tosubmitcommentsandsuggestions.

I.ReviewofNationalEconomicandSocialDevelopmentDuringtheEleventhFive-YearPlanPeriod

TheEleventhFive-YearPlanperiodwasatrulyextraordinarytimeinthecourseofthecountry'sdevelopment.Inthefaceofcomplexdomesticandinternationalsituationsandaseriesofmajorrisksandchallenges,theCommunistPartyofChina（CPC）unitedwithandledthepeopleofallthecountry'sethnicgroupsincomprehensivelyadvancingreform,openingupandmodernization,bringingaboutahistoricchangeinChinaoverthepastfiveyears.

-Thecountry'sproductiveforcesandoverallnationalstrengthimprovedsignificantly.Weeffectivelywardedofftheimpactoftheglobalfinancialcrisis,maintainedsteadyandrapideconomicdevelopmentandfulfilledthemajorobjectivesandtasksoftheEleventhFive-YearPlan,andtheeconomyscalednewheights.GDPgrewatanaverageannualrateof11.2%toreach39.8trillionyuan.Governmentrevenueincreasedfrom3.16trillionyuanto8.31trillionyuan.Majorbreakthroughswereattainedincutting-edgescienceandtechnologysuchasthemannedspacemission,thelunarexplorationprogramandsupercomputers.Greatprogresswasmadeinthemodernizationofnationaldefenseandthearmy.

-Progressinallsocialprogramsacceleratedandpeople'slivesimprovedsignificantly.Comprehensiveprogresswasmadeineducation,scienceandtechnology,culture,publichealthandsportsprograms.Thenumberofnewurbanjobsincreasedby57.71million,and45millionagriculturalworkersfoundurbanemployment.Thepercapitadisposableincomeofurbanresidentsrosebyanannualaverageof9.7%andthepercapitanetincomeofruralresidentsby8.9%inrealterms.Thesocialsecuritysystemcoveringbothurbanandruralareaswasprogressivelyrefined.

-Majorprogresswasmadeinreformandopeningup.Newbreakthroughswereachievedincrucialareasandkeylinksofreform,andthesocialistmarketeconomyfurtherimproved.Lastyear,totalforeigntradevolumereachedUS$2.97trillionandtheopennessoftheeconomyincreasedrapidly.

-China'sinternationalprestigeandinfluencegrewsignificantly.Weplayedanimportantandconstructiveroleininternationalaffairs;effectivelysafeguardedournationalsovereignty,securityanddevelopmentinterests;andmademajorprogressinourall-arounddiplomacy.WesuccessfullyhostedtheBeijingOlympicsandShanghaiWorldExpo,thusfulfillingdreamstheChinesenationhadcherishedforacentury.

ThesebrilliantachievementsclearlyshowtheadvantagesofsocialismwithChinesecharacteristicsandthegreatpowerofreformandopeningup.Theygreatlyincreasedtheconfidenceandprideofourpeopleofallethnicgroups,strengthenedthecohesivenessoftheChinesenation,andinspiredustoforgeaheadonourhistoriccourse.

Thefollowingareourmainaccomplishmentsoverthepastfiveyears:

1.Strengtheningandimprovingmacro-control,andspurringsteadyandrapideconomicdevelopment

Wepaidcloseattentiontotheorientation,focusandstrengthofmacro-controlandkeptafirmgraspontheinitiativeinoureconomicwork.IntheearlystagesoftheEleventhFive-YearPlanperiod,weadoptedcorrectpoliciesandmeasurestoaddressoverheatedinvestmentgrowth,theexcessivetradesurplus,excessliquidity,andstructuralandimportedinflation;effectivelypreventedemergingproblemsfromevolvingintotrends;andpreventedproblemsinanyoneareafrombecominggeneralproblems.Inthelasttwoyears,werespondedcoollytotheimpactoftheglobalfinancialcrisis-acrisisofaseverityseldomseeninthelastcentury,madedecisionsscientificallyandresolutelyfollowedaproactivefiscalpolicyandmoderatelyeasymonetarypolicy.Westeadfastlyimplementedamulti-pointplan,greatlyincreasedgovernmentspendingandmadestructuraltaxreductions,carriedouttheplanforrestructuringandreinvigoratingkeyindustriesonalargescale,vigorouslypromotedinnovationandincreasedsupportforworkinscienceandtechnology,andsubstantiallyincreasedsocialsecuritybenefits.Westeadfastlyfollowedastrategyofexpandingdomesticdemand;adoptedpoliciesandmeasurestoencourageconsumerspending;andincreasedurbanandruralincomes,particularlyforlow-incomepeople.Asaresult,consumerspendinggrewsteadilyanditsstructureconstantlyimproved.Wecarriedoutatwo-yearinvestmentplantoincreasespendingby4trillionyuan,including1.18trillionyuanfromthecentralgovernment.Ofthisamount,43.7%wasinvestedinlow-incomehousingprojects,projectstoimprovethewellbeingofruralresidents,andsocialprograms;15.3%ininnovation,restructuring,energyconservation,emissionsreductionsandecologicalimprovement;23.6%inmajorinfrastructureprojects;and14.8%inpost-Wenchuanearthquakerecoveryandreconstruction.Governmentspendingguidedanddrovenongovernmentalinvestment,greatlyincreaseddomesticdemandandeffectivelycompensatedforweakexternaldemand.ThishelpedtoreversetheslowdownineconomicgrowthinarelativelyshorttimeandmaketheChineseeconomythefirstintheworldtopickupagain.Inthisway,wenotonlygotoverthehardtimesandensuredandimprovedthewellbeingofthepeople,butalsolaidafirmfoundationforlong-termdevelopment.

2.Strivingtodoourworkrelatedtoagriculture,ruralareas,andfarmerswell,andconsolidatingandstrengtheningtheagriculturalfoundation

Centralgovernmentspendingonagriculture,ruralareas,andfarmerstotalednearly3trillionyuanandgrewatanaverageannualrateofmorethan23%.Agriculturaltaxandvariousgovernmentchargesweretotallyabolished,therebyendingthehistoryoffarmerspayingtaxesonthecropstheygrowandeasingtheirannualburdenbymorethan133.5billionyuan.Wesetupasubsidysystemforgraingrowersandabenefitsubsidysystemformajorgrowingareas,andpaidout122.6billionyuaninproductionsubsidiestograingrowerslastyear.Minimumpurchasepricesandtemporarypurchaseandstoragepolicieswereputinplaceforkeygrainvarieties,andtheminimumpurchasepricesforwheatandricewereraisedbybetween25%and40%.Werigorouslysafeguardedarableland.Weworkedhardtomakeadvancesinagriculturalscienceandtechnology.Newrecordhighsweresetforgrainproduction,whichreached5.4641trilliontonslastyear,theseventhconsecutiveyearlyincrease.Thepercapitanetincomeoffarmerscontinuedtogrowrapidlyandreached5,919yuan.Wemadesteadyprogresswithcomprehensivereformsinthecountrysideandfullyimplementedthereformoftenureincollectiveforestsandthesystemformanagingstate-ownedfarms.Weacceleratedagriculturalandruralinfrastructuredevelopment.Wefinishedreinforcing7,356largeandmedium-sizedreservoirsandkeysmallreservoirsandensuredthesafetyofdrinkingwaterfor215millionruralresidents.Farmers'livesconstantlyimprovedandruraldevelopmententeredanewera.

3.Stronglypromotingeconomicrestructuringandimprovingthequalityandperformanceofeconomicgrowth

First,weacceleratedindustrialrestructuringandinnovation.Wevigorouslycarriedouttechnologicalupgradinginenterprisesandenterprisemergersandreorganizations,whichnoticeablyraisedtheoveralllevelandcompetitivenessofChineseindustries,particularlyequipmentmanufacturing.Strategicemergingindustriesgrewrapidly.Weacceleratedthedevelopmentofthenationalinnovationsystem;carriedoutknowledgeinnovationprojectsandtechnologyinnovationprojects;andmadebreakthroughsinurgentlyneededcutting-edgetechnologies,coretechnologiesandkeyequipmenttechnologies.Alargenumberofresearchresultshavebeenappliedinindustrialproduction.TheserviceindustrydevelopedquicklyandtheproportionitcontributestoGDProseby2.5percentagepoints.Wegreatlyacceleratedinfrastructuredevelopment.Weexpandedtherailwaysystemby16,000kmoverthepastfiveyearsandtheroadsystemby639,000km,including33,000kmofexpressways.Webuilt,improvedorexpanded33airportsandbuiltorreinforced17,000kmofdykes.

Second,wemadegenuineprogressinenergyconservation,emissionsreduction,ecologicalimprovementandenvironmentalprotection.Weformulatedpolicies,measuresandnationalobjectivesforcontrollinggreenhousegasemissionsby2020anddrewupacomprehensiveworkplanforconservingenergyandreducingemissions.Wevigorouslydevelopedcleanenergy.Newpowergeneratingunitswithacapacityof445millionkWwereputonline,includinghydropowerplantswith96.01millionkWcapacityandnuclearpowerplantswith3.84millionkWcapacity.Wedecommissionedsmallthermalpowerplantswithacapacityof72.1millionkWandeliminatedanumberofoutdatedcoal,steel,cementandcokeproductionfacilities.Wemadeprogressonkeyecologicalforestryprojects,andafforestedatotalof25.29millionhectares.Weappliedacombinationofapproachestocontrolsoilerosionon230,000km2ofland,andstrengthenedeffortstocontrolwaterandairpollutioninkeywatersheds,preventandcontrolairpollutionandcontrolindustrialwastewater,wastegasesandresidues.Westronglypromotedthedevelopmentofthecirculareconomy.EnergyconsumptionperunitofGD