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Print Edition> Nation
UPDATED: March 13, 2011 NO. 11 MARCH 17, 2011
Setting Targets for 2011

We will adjust income distribution in a reasonable manner.

First, we will focus on increasing the basic incomes of low-income people in both urban and rural areas. We will steadily increase the minimum wage of workers, basic pensions of enterprise retirees, and basic-living guarantee allowances for both urban and rural residents. We will establish a sound mechanism of regular pay raises for workers and strictly enforce the minimum wage system.

Second, we will put more effort into adjusting income distribution. We will raise the individual income tax threshold on salaries, reasonably adjust the tax rate structure, and genuinely reduce the tax burden on low- and middle-income people. We will effectively regulate excessively high incomes, strengthen the dual controls on total wages and wage scales in industries in which incomes are excessively high, and strictly standardize the management of executive pay and bonuses in SOEs and financial institutions.

Third, we will vigorously overhaul and standardize income distribution. We will resolutely prohibit illicit income.

We will accelerate the improvement of the social security system that covers both urban and rural residents. We will extend the pilot project for the new type of pension system for rural residents to 40 percent of counties. We will solve longstanding problems concerning pensions for retirees of collectively owned enterprises, and put in place a pension mechanism to regularly adjust the basic pensions of enterprise retirees. We will actively press ahead with the reform of the system for government agencies and institutions. We will include employees of SOEs and collectively owned enterprises who suffer from old work-related injuries in the workers' compensation system.

We will resolutely regulate the real estate market.

First, we will build more low-income housing. This year, the total number of units of new low-income housing and units in run-down areas that will undergo renovation will reach 10 million, and 1.5 million dilapidated rural houses will be renovated. We will give priority to developing public rental housing. The Central Government is allocating 103 billion yuan ($15.14 billion) in this year's budget for subsidies to support this work, an increase of 26.5 billion yuan over last year. Governments at all levels need to raise funds through various channels and substantially increase spending in these areas.

Second, we will further implement and improve policies for regulating the real estate market and firmly curb the excessively rapid rise of housing prices in some cities. We will formulate and announce an annual housing development plan, designate sites for building low-income housing in the plan for new construction sites, and make sure that all designated sites are used to develop low-income housing. Emphasis will be placed on building more ordinary small and medium-sized commodity housing units. We will standardize and develop the housing rental market. We will strictly implement differentiated housing credit and tax policies, adjust and improve tax policies on real estate, tighten tax collection and administration, and effectively curb the purchase of homes for speculation or investment purposes.

Third, we will establish sound evaluation and accountability mechanisms. Localities that put insufficient effort into stabilizing housing prices and promoting the construction of low-income housing and thereby affect social development and stability will be held accountable.

We will press forward with the reform and development of the pharmaceutical and healthcare fields.

First, we will fully implement the national system for basic drugs at the primary level. We will put in place a sound system to guarantee supplies of basic drugs, strengthen oversight, ensure safety and genuinely cut prices.

Second, we will do a good job in the pilot projects for reforming public hospitals. We will improve the mechanism for settling medical disputes, and improve relations between hospitals and patients.

Third, we will raise the level of basic medical insurance. We will steadily cover more urban residents under the medical insurance system and more farmers under the new rural cooperative medical insurance system. This year, government subsidies for the new rural cooperative medical care system and medical insurance for urban residents will be increased to 200 yuan per person.

Fourth, we will complete the construction of the three-tiered county, township and village health service network in rural areas and community-based health service agencies in cities. We will increase government expenditures on basic public health services to an average of 25 yuan per person this year.

Fifth, we will encourage nongovernmental investors to establish medical institutions. We will expand market access for nongovernmental and foreign investors looking to establish medical institutions. We will comprehensively carry out population and family planning. We will keep the birthrate low.

We will strengthen and make innovations in social governance. We will strengthen the government's social governance functions, extensively mobilize and organize the people to participate in social governance in accordance with the law, make use of the positive role of social groups, and improve the structure of social governance.

7. Vigorously enhancing cultural development

8. Deepening reforms in key areas

9. Further improving our work of opening up to the outside world

10. Strengthening efforts to promote clean government and combat corruption

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