premier Wen's government work report

Following are the highlights of a government work report distributed to media ahead the annual session of the National People's Congress (NPC) Monday morning. The report is expected to be delivered by Premier Wen Jiabao at the session. MAJOR TARGETS FOR 2012 GDP will grow by 7.5 percent. Consumer Price Index (CPI) increase will be kept around 4 percent. More than 9 million new jobs will be created in towns and cities. The registered urban unemployment rate will be kept at 4.6 percent or lower. The volume of total exports and imports will increase by around 10 percent. China will make further progress in industrial restructuring, innovation, energy conservation, and emissions reduction, and ensure that both urban and rural residents' real incomes increase in line with economic growth. A deficit of 800 billion yuan is projected, a decrease to around 1.5 percent of GDP, consisting of 550 billion yuan in central government deficit and 250 billion yuan in local government bonds. FISCAL AND MONETARY POLICIES China will continue to implement a proactive fiscal policy. The government will increase spending on areas important to people's wellbeing. China will continue to implement a prudent monetary policy. The broad money supply is projected to increase by 14 percent. China will make the floating exchange rate regime more flexible and keep the RMB exchange rate basically stable at an appropriate and balanced level.