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On the basis of these general requirements, in 2002 we need to focus on the following eight aspects of work.

I. Expanding and Fostering Domestic Demand to Ensure a Relatively Rapid Economic Growth

Sustaining a relatively rapid growth of the national economy provides not only the basis for expanding employment, improving people's living standard and maintaining social stability, but also an important condition for accelerating economic restructuring and deepening reform. In the current grim international economic situation, expanding domestic demand is very important for achieving a relatively rapid economic growth to further stimulate both consumption and investment. We need to keep the momentum in continuing to implement the proactive fiscal policy and the prudent monetary policy and to adopt other supporting macroeconomic policies.

In order to expand domestic demand, we first of all need to raise the incomes of urban and rural residents, especially those with low incomes, to increase their purchasing power.First, we need to take more effective measures and adopt all possible means to increase farmers' incomes and lighten their burden. Second, the urban social security system needs to be further improved. The most pressing task is to ensure that subsistence allowances for laid-off workers from state-owned enterprises and basic pensions for retirees are paid on time and in full. We will not allow new arrears to occur anywhere. We need to improve the unemployment insurance system. At the same time, we need to strengthen the system of subsistence allowances for urban residents, so that all eligible poor urban residents will have their essential needs met. Now that the Central Government has greatly increased its budgetary funding for subsistence allowances, local governments, on their part, must do the same. For industries and enterprises in dire straits, we need to take effective measures to help their workers out of their plight. We will continue to reform the basic medical insurance system for employees in urban areas, the medical and public health systems and the pharmaceuticals production and distribution system. Pilot projects for improving the social security system being carried out throughout Liaoning Province and in some cities of other provinces and autonomous regions need to be pushed forward. We will work hard to raise, manage and make good use of funds for national social security programs. Third, we will again appropriately raise the basic wages and salaries of employees in government departments and institutions and the pensions of their retirees. Enterprises under all forms of ownership also should appropriately increase the wages and salaries of their employees on the basis of improved economic performance. Local governments in those places that owe salaries to cadres, procurators, judicial and public security officers and teachers must take effective measures to solve this problem as soon as possible. Local financial departments should first of all ensure that wages and salaries are paid. Wages and salaries that are in arrears must be paid as soon as possible. We need to ensure that wages and salaries are paid on time and in full even if for that new construction projects have to be cancelled and things that are not urgent have to be given up or reduced in scale. On the basis of strict determination of the number of personnel, the central financial authorities will subsidize these outlays through transfer payments to those provinces, autonomous regions and municipalities directly under the Central Government that cannot meet their obligations. Provincial financial departments will also subsidize those cities and counties in financial straits through transfer payments. Fourth, we need to exert every effort to expand employment and reemployment. This is an important means of increasing people's incomes. We need to afford job opportunities on a more extensive scale and create more jobs. We need to intensify our efforts to develop labor-intensive industries, service trades, and small and medium-sized enterprises that can provide a good many jobs. We need to create more jobs in community services. We need to adopt elastic, flexible and diversified forms of employment. We also need to develop the labor market, improve the employment service system, and conscientiously implement policies of preferential treatment that encourage self-employment and expand employment. Special employment assistance should be given to members of disadvantaged groups. Fifth, we need to expand the scope of consumption, and improve the climate for consumption. We need to eliminate all barriers to consumption by deepening reform and adjusting policies. We need to encourage people to spend more on housing, tourism, automobiles, telecommunications, cultural activities, sports and other services and develop new focuses of consumer spending.

Maintaining the necessary level of investment from treasury bonds to stimulate a relatively rapid growth of fixed-asset investment.In light of needs and possibilities, we plan to issue 150 billion yuan of long-term treasury bonds for construction in 2002. Funds to be raised will be used mainly for treasury bond-financed projects under construction, development projects in the western region, technological transformation of key enterprises, water diversion from the south to the north, water resource conservation in Beijing and Tianjin, rural infrastructure, facilities for procuratorial, judicial and public security organs, and facilities for universities and colleges that will increase their enrollments. Work on most of the projects financed by treasury bonds and launched since 1998 must be basically completed this year. At present, people's savings deposits have increased considerably; banks have sufficient funds; interest rates are low; market prices are stable; and the ratio of national debts to GDP is still within safe limits. There is still room for issuing more long-term treasury bonds for construction without incurring great risks. The investment of treasury bonds in construction of major projects and projects urgently needed by society will not only help stimulate economic growth and expand new sources of revenue, but also help us pool resources of all sides for accomplishing large undertakings and improve the results of all investments. While expanding investments from treasury bonds, we will take measures to utilize funds from other domestic sources effectively and to direct and encourage investments from all sectors of society. We should pay great attention to utilizing funds rationally and economically and resolutely prevent ineffective input and redundant construction. In infrastructure development, we also need to plan rationally, do everything according to our financial capabilities, stress economic results, and avoid inappropriately high standard construction. We will continue to tighten supervision and management over the use of capital from treasury bonds, the construction of projects and the quality of engineering and to investigate and severely deal with any act of withholding or misappropriating these funds.

Doing a better job in financial and taxation work, stabilizing the taxation system, and strengthening tax collection and administration.We need to strictly abide by law in tax administration, so that all taxes due a

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