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Balancing investment and consumption is an important aspect of this year's work for macro-control. Consumption occupies too small a proportion of China's GDP. This is not conducive to ensuring a stable increase in domestic demand, sustaining rapid economic growth and establishing a beneficial economic cycle. We must work hard to increase the incomes of both urban and rural residents and raise their purchasing power. Regulation of income distribution will be intensified to enable low- and middle-income people to consume more. Consumption on credit must be expanded, consumption policies must be optimized and the consumption climate must be improved. To adapt to changes in consumption patterns, we need to expand the consumption of services and improve the production and supply structure. The reform measures we take should enhance consumer confidence, so as to create positive consumer expectations and increase immediate consumption. We should gradually reduce the rate of investment in relation to the rate of consumption.
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2. Consolidating and strengthening the position of agriculture as the foundation of the national economy and increasing rural incomes and agricultural production
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Solving problems facing agriculture, rural areas and farmers is a top priority in all our work. Once again, China's agriculture is in a crucial period of its development. This year we must take more direct and effective policies and measures to strengthen, support and protect agriculture and increase rural incomes in line with the need to balance urban and rural development.
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First, the overall grain production capability must be maintained and increased. The strictest possible system for protecting farmland will be implemented and control over the use of farmland will be strengthened in accordance with the law. We will resolutely put an end to illegal acquisition and use of farmland and rectify unauthorized changes in the use of primary farmland. Reform of the system for land expropriation and requisition will be accelerated, and the expropriation and requisition procedures and mechanisms for compensation will be improved to ensure that the compensation for expropriated or requisitioned land is appropriate. The acreage sown in grain crops will be expanded, and the yield per unit area increased. Support will be focused on increasing production in major grain producing areas. Projects to industrialize production of high-quality grains will be undertaken. We will make primary farmland capable of producing stable, high yields.
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Second, we will promote strategic restructuring of agriculture and the rural economy. Great efforts will be made to develop high- quality, high-yield, cost-effective, eco-friendly and safe agriculture, to improve the quality of agricultural products and enhance their competitiveness. We will carry forward the development of industrial belts for producing competitive agricultural products and promote the industrialization of agriculture. We will energetically develop animal husbandry and prevent and control the spread of the highly pathogenic bird flu and other animal epidemics. We will encourage the development of industries that process agricultural products and other non- agricultural industries in rural areas and expand intra-county economies. We will steadily carry out the process of urbanization. We will improve the employment environment for rural workers in cities, provide them with more and better training and create more jobs for them in various ways.
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Third, we will press ahead with the reform of rural taxes and administrative charges. All taxes on special agricultural products will be repealed except for tobacco, thus reducing the financial burden on farmers by 4.8 billion yuan annually. Beginning this year, the agricultural tax rate will be reduced by more than 1 percentage point per year on average, and agricultural taxes will be rescinded in five years. The agricultural tax burden on farmers will be reduced by 7 billion yuan this year. The central government will appropriate 39.6 billion yuan this year from its budget for transfer payments to support the reform of rural taxes and administrative charges. We will accelerate reforms of county and township government institutions.
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Fourth, we will deepen the reform of the grain distribution system. All controls over grain purchase and sales markets will be lifted. The reform of state-owned grain enterprises will be accelerated. Control and regulation of grain markets will be strengthened, and subsidies will be given directly to grain producers. The state will appropriate 10 billion yuan this year from its grain risk fund to directly subsidize these producers in order to stimulate their enthusiasm for grain production. The prices of the means of agricultural production will be better monitored and controlled to protect farmers' interests.
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Fifth, we will increase investment in agriculture and rural areas. Governments at all levels must invest more in agriculture, rural areas and farmers. This year, the central government will appropriate over 30 billion yuan for this purpose, at least 20% more than last year. Treasury bond funds should be invested mainly in the construction of six categories of small projects for rural areas (water-efficient irrigation, potable water supplies, roads, methane production facilities, hydroelectric plants and pasture enclosure) and in construction of water control projects, in order to improve the living and production conditions of farmers. We will continue to aid the rural poor through development by increasing funding for poverty alleviation in various ways and giving people work in place of relief subsidies. Rural financial services will be improved. To assist rural residents expand production, rural credit cooperatives will extend more micro- credit loans to individual families and groups in rural areas.
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Sixth, progress in agro-science will be accelerated. We will tackle agro-science problems with greater intensity and increase our ability to make advances in agro-science and hold them in reserve and find applications for them. We will strengthen the system for spreading the application of science and technology in rural areas. We will energetically promote wider application of advanced applied technology that can help increase production and improve productivity. We will expand both the size and scope of subsidies for developing seeds of high-quality crop varieties.
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3.Coordinating economic development in different regions and promoting the development of the western region and the revitalization of northeast China and other old industrial bases
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Promoting the coordinated development of all regions is of strategic importance to China's modernization drive. We need to steadfastly push forward with the development of the western region, revitalize northeast China and other old industrial bases, promote the development of the central region and encourage faster development in the eastern region so that the eastern, central and western regions can better interact, complement and support each other, and develop together.
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We will continue to implement the strategy of developing the western region. On the basis of a conscientious review of our experience, we will improve our policies and carry out relevant measures to ensure positive and orderly progress. We will work in a down-to-earth manner to ensure successful implementation of such key ecological conservation projects as returning farmland to forests and animal breeding grounds to pastures, protecting natural forests, bringing sources of sandstorms under effective control and preventing karst areas from becoming stony deserts. We will strengthen infrastructure development efforts, emphasizing major projects of key importance to the overall economy to increase the potential for economic development. At the same time, we will continue to pay adequate attention to the construction of smaller projects that will improve the living and production conditions of farmers and herdsmen. Social undertakings will be promoted, with priority given to compulsory education, public health and primary-level cultural undertakings. We will encourage the development of economies with local characteristics and competitive industries and promote the development of key regions.
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We will conscientiously implement the strategy for revitalizing northeast China and other old industrial bases, working to get off to a good start this year. We must carry out all the policies and measures of the central authorities, emphasizing innovation in institutions and mechanisms and opening wider both domestically and internationally. We need to accelerate economic restructuring and technological progress, especially for key industries and enterprises, transform the resource-based economies of certain cities, and solve the problem of sinking land and cave-ins above exhausted mines in coalmining areas. We must uphold the principles of self-reliance and hard work and let cadres and the general public give full expression to their initiative and creativeness.
ÈÏÕæʵʩ¶«±±µØÇøµÈÀϹ¤Òµ»ùµØÕñÐËÕ½ÂÔ£¬½ñÄêÒªÓÐÒ»¸öÁ¼ºÃµÄ¿ª¶Ë¡£ÂäʵÖÐÑëµÄ¸÷ÏîÕþ²ß´ëÊ©£¬Í»³öÌåÖÆ»úÖÆ´´Ð£¬À©´ó¶ÔÄÚ¶ÔÍ⿪·Å¡£¼Ó¿ì¾­¼Ã½á¹¹µ÷ÕûºÍ¼¼Êõ½ø²½£¬×ÅÁ¦×¥ºÃÖصãÐÐÒµ¡¢ÖصãÆóÒµµÄµ÷Õû¸ÄÔ죬×öºÃ×ÊÔ´ÐͳÇÊо­¼ÃתÐͺͲÉú³ÁÏÝÇøÖÎÀí¹¤×÷¡£Òª¼á³Ö×ÔÁ¦¸üÉú£¬¼è¿à´´Òµ£¬³ä·Ö·¢»Ó¹ã´ó¸É²¿ÈºÖڵĽøÈ¡¾«ÉñºÍ´´Ô쾫Éñ¡£
 
Accelerating the development of the central region is an important aspect of our endeavor to ensure well-balanced development of regional economies. The state is encouraging the central region to exploit its geographical and economic advantages to quicken the pace of its reform, opening up and development, modernize its agriculture, and build key areas for commercial grain production, strengthen its infrastructure development, expand its competitive manufacturing and new and high technology industries, and raise its levels of industrialization and urbanization.
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Accelerating development of the eastern region will strengthen the country financially, materially, scientifically and technologically, thereby providing more support for the development of the central and western regions. The eastern region should continue making the most of its advantages, speed up efforts to upgrade its industrial structure and make its economy more oriented to the global market; areas where conditions are most favorable should take the lead in becoming basically modern. The eastern, central and western regions should increase cooperation in various ways and gradually achieve common prosperity through balanced development. The government will continue to take measures to help old revolutionary base areas develop more quickly.
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4.Continuing to implement the strategy of invigorating China through science and education and staying on the road of sustainable development
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In the course of development, we will steadfastly give priority to education and devote more energy and financial resources to accelerating its development. We will adopt a fresh round of measures to implement the Action Plan for Reinvigorating Education, with the focus on compulsory education, particularly in rural areas. This year we will begin to implement the plan to make nine- year compulsory education basically available throughout the western region and basically eliminate illiteracy among the adults there by 2007. The central government will spend 10 billion yuan on this work. The system for managing compulsory education in rural areas must be improved by shifting the main responsibility to county governments and increasing transfer payments from central, provincial and city (prefectural) governments for compulsory education in poverty-stricken counties. The central government will contribute 6 billion yuan to carrying out the second phase of the plan for renovating dangerous primary and secondary school buildings in rural areas. Both central and local governments will increase their investment to develop modern distance education in rural primary and secondary schools. We will work to optimize the education structure, take energetic and steady steps to develop higher education, and put more effort into developing vocational education and continuing education. Schools of all kinds and at all levels should fully implement the Party's education policy, emphasize competence-oriented education, deepen the reform of education and improve its quality. We will standardize and develop non-government funded education. Unauthorized collection of fees by educational institutions must be resolutely stopped to reduce the financial burden on students' families.
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This year, we will continue to concentrate on formulating a medium- and long-range state plan for developing science and technology in order to define the strategy, objectives, tasks and policies in this field for the coming 15 years. Institutional reform and innovation in the field of science and technology should be continued. We will accelerate the establishment of a national innovation system and construction of the science and technology infrastructure, and effectively strengthen basic research. We will carry out a number of projects of major importance for overall economic and social development, promote the integration of science and technology with industry and encourage the application of new and high technologies in industrial production. We consider social and natural sciences equally important and will make full use of the important role of philosophy and social sciences in economic and social development.
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We should conscientiously implement the strategy of reinvigorating China through human resource development. Training, recruiting and properly using talented people in all fields should provide substantial personnel and intellectual support for the modernization drive.
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