SUPPLY-SIDE STRUCTURAL REFORM
Supply-side structural reform will be given priority in China's development, Li said.
According to the report, efforts will center on a variety of areas,including streamlining administration, reducing taxes, further expanding market access, and reducing ineffective supply while expanding effective supply.
Comparing the reform as "the struggle from chrysalis to butterfly," Li said China must press forward with courage and get the job done.
"China's endeavors to deepen reforms, improve government efficiency and encourage innovation and entrepreneurship have had positive impacts on the economic sector," Zhang Zhao'an said.
To be specific, China will further reduce steel production capacity by around 50 million metric tons and coal capacity by at least 150 million metric tons this year, the report said.
It also highlighted cutting excess urban real estate inventory, bringing down the leverage of enterprises, reducing costs for enterprises and strengthen areas of weakness including poverty eradication.
China will pursue a more proactive and effective fiscal policy.It has set its government fiscal deficit this year at 2.38 trillion yuan, or 3 percent of its GDP, an increase of 200 billion yuan over last year.
It plans to invest 800 billion yuan in railway construction and 1.8 trillion yuan in highway and waterway projects, and begin construction on another 15 major water conservation projects.
This year, the government aims to reduce the number of rural residents living in poverty by over 10 million, including 3.4 million to be relocated from inhospitable areas. Central government funding for poverty alleviation will be increased by over 30 percent.
Meanwhile, the report said, transforming and upgrading the real economy through innovation will be another focus of work.
"China's population dividends are declining, but its institutional dividends are increasing," Zhang said.
