Full Text: Report on China's economic, social development plan(12)

III. Major Tasks and Measures for Economic and Social Development in 2012

As this is an important year for linking the efforts we have already made in implementing the Eleventh Five-Year Plan and the efforts we are going to devote in implementing the Twelfth, successfully completing all the work for economic and social development this year is of great significance for consolidating and expanding upon our achievements in responding to the global financial crisis, promoting scientific development, and accelerating the transformation of the pattern of economic development. In order to successfully complete the objectives and tasks for economic and social development, we need to adhere to the general principle of making progress while maintaining stability and concentrate on the following ten tasks in line with the requirements of keeping economic growth stable, bringing price rises under control, carrying out economic restructuring, improving the people's wellbeing, implementing reform, and promoting social harmony.

1. We will strengthen and improve macro-control to make it more targeted, flexible, and future-oriented.

We will steadfastly take all factors into account, balance all targets and tasks, and correctly handle the relationship between maintaining steady and robust economic growth, restructuring the economy, and keeping the overall price level basically stable; and when exercising macro-control, we will give priority to addressing prominent conflicts and problems arising in the process of economic and social development and to effectively guarding against hidden risks in economic activities, and have a good grasp of the intensity, tempo and focus of macro-control. We will continue to implement a proactive fiscal policy and a prudent monetary policy. In implementing the fiscal policy, we will improve the policy for structural tax reductions, keep the fiscal deficit and government bonds at appropriate levels, make an effort to optimize the structure of government expenditures, and give more support to areas concerning the people's wellbeing. This year, national revenue is budgeted at 11.36 trillion yuan with a year-on-year increase of 9.5%, and national expenditures are budgeted at 12.43 trillion yuan, up 14.1%; and the fiscal deficit is set at 800 billion yuan, 50 billion yuan less than last year. This figure includes a central government deficit of 550 billion yuan and 250 billion yuan in bonds that will be issued on behalf of local governments. When carrying out the monetary policy, we need to consider both economic growth and trends in prices; and finely adjust supplies of money and credit and maintain a reasonable growth in financing from all sources, in line with the requirements of maintaining proper scale and making prudent yet flexible adjustments. We will work hard to improve the credit structure, and give more support to key national projects under construction or expansion and low-income housing projects, as well as to enterprises and small and micro ones in particular that are encouraged in industrial policy and have market demand. We will tighten post-loan supervision and ensure that loans better serve the real economy. We will continue to strictly control loans to industries that are energy-intensive, highly polluting or have excess production capacity. We will create a sound mechanism to prevent, oversee and manage systemic financial risks and coordinate the efforts to address them, strengthen the monitoring of cross-border flow of capital, and promote standardization of informal credit. The broad money supply (M2) is expected to increase 14% in 2012, up 0.4 percentage points from last year. We will strengthen coordination and cooperation among the fiscal, monetary, investment, industrial, pricing, land and environmental protection policies, strive to create a synergy of macro-control, and make our macro-control more scientific and effective.