2009 National People's Congress - Premier's Work Report

Premier's Work Report

The Premier, Wen Jiabao, delivered the annual Government Work Report on March 5, 2009. This annual speech details the government's policy and legislative agenda for the past and coming year (roughly analogous to the State of the Union address and Throne Speeches in some other countries). While acknowledging the deepening financial crisis, Wen declared that China would aim for a GDP growth of 8% in the coming year. Wen revealed that the central government deficit hovers around 750 billion yuan ($US109.63 billion), 570 billion yuan more than last year. The total deficit will amount to 950 billion yuan ($US139 billion) as local governments plan to issue 200 billion yuan worth of government bonds. Although this is a relatively large deficit by Chinese standards, it only accounts for less than 3% of the GDP.

Wen pointed to improvements in cross-strait relations between mainland China and Taiwan, and declared that the two sides have entered a "peaceful period". He remarked that new agreements on economic cooperation will be signed in the coming year. To address reconstruction after the deadly Sichuan Earthquake in May 2008, the central government will allocate 130 billion yuan to accelerate recovery in hard-hit areas in Sichuan province. In health care reform, Wen stressed that governments at all levels will allocate an additional 850 billion yuan in the next three years, including 331.8 billion yuan directly from the central government.