Calling 2009 the most difficult year of the century for China's economy, Premier Wen Jiabao pledged that the Chinese government would invest 908 billion yuan (132.7 billion US dollars) to arrest the economic slid and achieve the goal of 8% growth this year.
To fulfill this pledge, the Chinese government was prepared to dig into a fiscal deficit of 950 billion yuan (138.9 billion US dollar) this year, and release some five-trillion-yuan (731.3 billion US dollar) in additional loans.
Wen said of the above during the opening of the annual plenary session of National People's Congress, China's parliament, on March 5. The session would last through March 13.
In outlining China's major economic targets this year, the Premier also reiterated that the government intended to cap the unemployment rate at 4.6% and control inflation at around 4%.
As part of the move to spur domestic demand, the Chinese government would provide tax relief amounting to 500 billion yuan for individuals and companies this year.
To boost liquidity and currency circulation, the government would increase broad money supply by about 17% this year and release more loans.
Among the main areas for boosting spending and credit include the agriculture sector, small and medium industries, reconstruction efforts in disaster-hit areas, social safety nets, and job creation.
Most of the targets Wen mentioned on Thursday had been repeatedly stressed by government officials since early this year.
The fallout of the global financial crisis has taken a toll on China's economy, with workers losing jobs while companies faced tighter cash flows and slower demand.
While officials at all level were told to work towards the 8% growth target, this year's growth projection remained a guess among scholars and market observers.
In a recent poll conducted by the Economic Observer among 43 Chinese economists, only 60% of them had said that the 8% target was achievable. Though those surveyed appeared less optimistic, very few of them were outright pessimistic -- only 6% of the respondents projected a GDP growth between 5% and 7%.
