China will pursue a proactive fiscal policy with greater intensity and enhance its performance. Deficit-to-GDP ratio this year is projected at 2.8 percent, a 0.2-percentage-point increase over that of last year. The budgetary deficit is projected at 2.76 trillion yuan, with a central government deficit of 1.83 trillion yuan and a local government deficit of 0.93 trillion yuan.
Government expenditure is budgeted at over 23 trillion yuan, a 6.5 percent increase. The central government's transfer payments to local governments for equalizing access to basic public services will increase by 10.9 percent.
The prudent monetary policy will be eased or tightened to the right degree. Increases in M2 money supply and aggregate financing should be in keeping with nominal GDP growth to keep major indicators within an appropriate range.
An employment-first policy will be pursued with full force. Employment is the cornerstone of wellbeing, and the wellspring of wealth.
This year, on the top of the urban job creation target, China will work to reach the actual employment figures of the past few years so as to ensure employment for the urban workforce while creating nonagricultural employment opportunities for the surplus rural workforce.
China will continue to pursue supply-side structural reform as our main task, focusing on consolidating, strengthening, upgrading, and ensuring unimpeded flows: China will use more reforms and means in accordance with market principles and law to consolidate the gains made in the five priority tasks; to strengthen the dynamism of micro-entities; to upgrade industrial chains; and to ensure unimpeded flows in the economy, thus moving toward high-quality development.
China will continue the three critical battles and adopt precise measures to deliver solid outcomes. To forestall and defuse major risks, China should be clear about potential dangers, continue structural deleveraging, forestall abnormal financial market fluctuations, deal prudently with local government debt risk, and guard against and control externally-generated risks.
China will intensify precision poverty alleviation efforts in accordance with current standards, with the focus on deeply impoverished areas and the most vulnerable groups to deliver solid outcomes.
In addressing pollution, China will focus on major priorities such as the fight to keep the skies blue, take a holistic approach, address both symptoms and root causes, and make continuous improvements to the environment.
