Full Text: Report on the Work of the Government(11)

Fellow Deputies,

Our achievements over the past five years did not come easily. We owe them to the broad vision and correct leadership of the Party Central Committee and the concerted efforts and arduous work of the whole Party and the people of all ethnic groups in China. On behalf of the State Council, I extend my sincere gratitude to all workers, farmers, intellectuals, officials, and members of the People's Liberation Army, armed police and public security police. I extend my heartfelt thanks to the people of all our ethnic groups, the democratic parties, people's organizations and leading figures in all sectors of society. I express my sincere thanks to our compatriots in the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan, as well as overseas Chinese. I also extend my sincere appreciation to foreign governments, international organizations and foreign friends that have shown understanding for and supported China's modernization drive.

We are keenly aware that we still face many difficulties and problems in our economic and social development. In particular:

-- Unbalanced, uncoordinated and unsustainable development remains a prominent problem.

-- There is a growing conflict between downward pressure on economic growth and excess production capacity.

-- Enterprises' operating costs are increasing and their capacity for innovation is weak.

-- The growth of government revenue is slowing down while fixed government expenditures are increasing.

-- There are potential risks in the financial sector.

-- The industrial structure is unbalanced.

-- The agricultural foundation is still weak.

-- Economic development is increasingly in conflict with resource conservation and environmental protection.

-- The development gap between urban and rural areas and between regions is large, and so are income disparities between individuals.

-- Social problems have increased markedly, and many problems in the areas of education, employment, social security, medical care, housing, the environment, food and drug safety, workplace safety, and public order affect people's vital interests. Some people still lead hard lives.

-- There are many systemic and institutional obstacles to developing in a scientific way.

-- The transformation of government functions has not been fully carried out, and some areas are prone to corruption.

Some of these problems have built up over time, while others have emerged in the course of economic and social development, and still others have been caused by inadequacies and weaknesses in our government work. We should have a strong sense of responsibility toward our country and people, work harder and solve these problems more quickly in order to meet people's expectations and never let them down.