III. Major Tasks and Measures for Economic and Social Development in 2011

This is the first year of implementing the Twelfth Five-Year Plan. Successfully completing all the work for economic and social development in 2011 is of great significance for continuing to seize and make full use of this important period of strategic opportunities as well as greeting the 90th anniversary of the founding of the CPC with outstanding achievements. We need to continue to strengthen and improve macro control; more actively yet prudently handle the relationships between maintaining steady and rapid economic development, restructuring the economy and managing inflation expectations; and make stabilizing the overall level of prices the main task of macro-control. We will continue to implement a proactive fiscal policy and fine-tune the intensity of policy implementation. We will reduce the budget deficit and the scale of government bonds by appropriate amounts. This year, we have projected a deficit of 900 billion yuan, 150 billion yuan less than last year. This figure includes a central government deficit of 700 billion yuan and 200 billion yuan in bonds that will be issued by the central government on behalf of local authorities and be included in local government budgets. The deficit as a percentage of GDP will drop to about 2%. We will implement a prudent monetary policy; the broad money supply (M2) is expected to increase 16% this year; and we will keep financing from all sources at a reasonable level. We need to have a good grasp of the intensity, tempo and focus of policy implementation; strengthen coordination between policies; and comprehensively consider both short-term macro-control policies and long-term development policies. We need to work hard to resolve major problems presently hindering our development and prevent large economic fluctuations, and at the same time, we also need to effectively resolve deep-seated problems and defuse potential risks, and make development more coordinated, sustainable and internally vigorous.

In 2011, we will concentrate on the following nine tasks.