Ninth NPC Third Session Convenes Second Meeting

The second plenary meeting of the Third Session of the Ninth National People's Congress (NPC), China's top legislature, opened in Beijing Sunday morning.

Entrusted by the State Council, the Chinese cabinet, Zeng Peiyan, minister in charge of the State Development Planning Commission, delivered a report on the Implementation of the 1998 Plan for National Economic and Social Development and on a Draft 1999 Plan for National Economic and Social Development. Finance Minister Xiang Huaicheng gave a report on the implementation of the Central and Local Budgets for 1998 and on Draft Central and Local Budgets for 1999.

The Party and state leaders, including Jiang Zemin, Li Peng, Zhu Rongji, Hu Jintao, Wei Jianxing and Li Lanqing, were, among other ranking officials, present at the meeting, which was presided over by Tian Jiyun, vice-chairman of the NPC Standing Committee and an executive chairman of the NPC session presidium. Reading out his report, Zeng said that the 1999 plan was carried out satisfactorily and the major regulatory targets for national economic and social development were basically attained.

Last year, China's GDP hit 8.2054 trillion yuan, representing an increase of 7.1 percent over he previous year; issued a total of 101 billion yuan worth of treasury bonds, with 60 percent of the capital from the treasury bonds issue going into the central and western regions; scored a total volume of imports and exports of 360.7 billion U.S. dollars, an increase of 11.3 percent over the previous year; actually used 56.3 billion U.S. dollars of foreign funds, a decrease of 3.9 percent over the previous year. With regard to social progress last year, the minister noted that 40 million rural residents ended the history of being not accessible to radio and TV broadcasts.

Zeng went on to set forth general targets of economic work in the year 2000, which is featured with an economic growth rate of around seven percent; an increase in total fixed asset investment of around 10 percent; the consumer price level and overall price level equal to or will be slightly higher than those of 1999; an increase of three percent in total volume of imports and exports, and a basic equilibrium of balance of payments; a central government deficit of 229.9 billion yuan; the registered urban unemployment rate controlled around 3.5 percent; and a natural population growth rate of 0.92 percent.

Substantial steps are expected to be taken this year to carry out the strategy of large-scale development of the western region, by accelerating infrastructure development like water conservancy, communications, transportation, telecommunications, radio and TV facilities, in a bid to promote the transformation of the region's resource advantages into economic advantages, he noted. In addition, he said, ecological development and environmental protection are an important part of the strategy.

In his budget report, Xiang said the central and local budgets for 1999 were implemented fairly satisfactorily, with the growth of revenue exceeding that of the economic growth, leaving a deficit of 179.7 billion yuan, less than the amount approved by the NPC Standing Committee.

Last year, total government bonds in the central budget issued in 1999 amounted to 401.5 billion yuan, and apart from 30 billion yuan issued in the name of the local authorities, central revenue from generation of debt totaled 371.5 billion yuan, or 100 percent of the readjusted budgetary figure, according to the minister. Referring to the draft central and local budgets for 2000, Xiang said the revenue is arranged at 1.2338 trillion, an increase of 96.1 billion yuan, or 8.4 percent over the actual figure for 1999, and the expenditures total 1.4637 trillion yuan, an increase of 150 billion yuan, or up 11.4 percent over the actual figure for 1999.

According to the minister, major central budgetary arrangements include an 89.3 billion yuan investment for capital construction ( including subsidies for local authorities); 16.5 billion yuan worth funds and subsidies on interests payment from the central budget for upgrading or retooling of enterprises; and 70.7 billion yuan will be earmarked for investing in the social security system. Meanwhile, the government also plans to increase input in the fields of education, science and technology, agriculture, and security, he disclosed.

The minister said there are necessary conditions for implementing a proactive fiscal policy without any great risks, and by international standards, there is still some room for China to issue more bonds.

a total of 2,821 NPC deputies were present at today's meeting. Members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), who are here to attend the annual session of the CPPCC National Committee, were also present at the NPC meeting as observers.

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