Chinese premier charts change of economic focus (1st Lead)

Mar 5, 2010, 3:24 GMT

Beijing - Premier Wen Jiabao called for an 'urgent' change in China's economic focus as he delivered a state-of-the-nation economic report Friday at the opening of the annual National People's Congress.

Wen reported the government's economic performance in 2009 and outlined key economic policies for this year to the NPC, which is the nominal state parliament of the ruling Communist Party.

'We urgently need to transform the pattern of economic development,' he told some 3,000 delegates who heard the opening speeches of the 10-day event.

Wen said the government would 'promote the steady development of agriculture and a continuous increase in incomes.'

It would encourage job creation, support the growth of service industries, 'energetically expand consumer demand,' fight corruption and improve government accountability, he said.

'We will strive to conserve energy and reduce emissions,' Wen said, adding that the government 'will work hard to develop low-carbon technologies' and renewable energy.

He announced a record budget deficit of 1.05 trillion yuan (154 billion dollars) for 2010, with planned central government spending of 4.666 trillion yuan, up 6.3 per cent from 2009.

'This is a crucial year for continuing to deal with the global financial crisis, maintaining steady and rapid economic development, and accelerating the transformation of the pattern of economic development,' Wen said.

'Although this year's development environment may be better than last year's, we still face a very complex situation,' he said.

China said its economy showed signs of recovery from the global slowdown last year. Despite a 16-per-cent fall in export value in 2009, gross domestic product grew by 8.7 per cent, stimulated by a 4- trillion-yuan infrastructure-centred spending package.

Wen said the government would target GDP growth of about 8 per cent this year.

Earlier this year, the party's 'Number 1 Document,' an annual statement of key economic and social policies, promised more support for agriculture and improved social security for rural areas.

NPC spokesman Li Zhaoxing said Thursday that China planned to increase its military budget for this year by 7.5 per cent, following much larger defence hikes in recent years.

About 2,250 members of an advisory body, hundreds of journalists and observers, and a military brass band also attended the opening of the NPC.