China's development, reform commission presents report to parliament.

(From BBC Monitoring International Reports)

Text of report by official Chinese news agency Xinhua (New China News Agency)

["Two sessions authorized release": "Report on State of Execuition of National Economic and Social Development Plan for 2006 and Draft Plan for National Economic and Social Development in 2007 (Summary)".]

Beijing, 6 Mar (Xinhua) - As commissioned by the State Council, the State Development and Reform Commission on 5 March submitted a "Report on the Execution of the National Economic and Social Development Plan for 2006 and the Draft Plan for National Economic and Social development in 2007" to the fifth session of the 10th National People's Congress. The following is a summary of the report:

State of Execution of the National Economic and Social Development Plan for 2006

In 2006, under the leadership of the CCP, the people of all ethnic groups throughout the country seriously implemented the scientific development concept and the major strategic idea of building a socialist harmonious society; in accordance with the national economic and social development plan discussed and approved by the Fourth Session of the 10th NPC, they speeded up reform and opening up and modernization; development conditions further improved, the development environment was further optimized, the development momentum tended to further improve, a good start as made in achieving the 11th Five-year Programme [FYP], and firm strides were taken towards the grand goal of comprehensively building a well-off society [xiaokang shehui].

- A good posture of relatively fast growth, relatively good economic returns, and relatively low prices was maintained in national economy operation. GDP was 20.94 trillion yuan, a rise of 10.7 per cent. The steadiness of economic growth was markedly strengthened, with relatively small year-on-year and season-on-season fluctuations in the rate of GDP growth. The general consumer price level rose by 1.5 per cent. Fiscal revenue was 3.93 trillion yuan, a rise of 24.3 per cent; profit of industrial enterprises at and above scale level [guimo yi shang[ was 1.8784 trillion yuan, up by 31 per cent. Unit GDP energy consumption declined by 1.23 per cent, the first decline since 2003; and unit water consumption for increased value declined by 9 per cent. A number of conspicuous contradictions and problems in economic operations eased somewhat. The rate of increase in investment fell back somewhat; all-society investment in fixed assets over the year rose by 24 per cent, a decline of 2 percentage points compared with the previous year. Monetary and credit increase tended to moderate. There was a marked improvement in the coal, electricity, and transport shortage. Transport of grain, chemical fertilizer, and other key materials was relatively well assured.

- The building of a new socialist countryside proceeded in sound fashion. The policies favouring agriculture were further improved. Having abolished agricultural tax and tax on speciality agricultural products throughout the country, plus the previous abolition of the slaughter tax, livestock tax and other agricultural-related charges, the peasants' annual burden has been lightened by about 125 billion yuan. With the institution of direct subsidy for grain-growing peasants, subsidy for fine strains, subsidy for purchasing farm machines and tools, and comprehensive direct subsidy of agricultural funds, the annual subsidies have exceeded 30 billion yuan; we have increased transfer payments to counties in financial difficulty and major grain-producing counties, and granted award subsidies of 23.5 billion yuan. Investment for supporting agriculture has continued to increase. Central treasury payments for the "three rural issues" [san nong: agriculture, peasants, and rural areas] reached 339.7 billion yuan (including comprehensive direct subsidy of 12 billion yuan for grain-growing peasants, arranged from the special returns funds on petroleum), 42.2 billion yuan more than in the previous year. Rural production and living conditions have improved. The central treasury invested 6 billion yuan in safe rural drinking water projects, 200 per cent more than in the previous year, while the local authorities put in 6.9 billion yuan, benefiting 28.97 million peasants; the central treasury invested 2.5 billion yuan in rural methane construction, 150 per cent more than in the previous year, while local authorities put in 1.56 billion yuan, increasing the number of households using methane by about 4.5 million; the central treasury arranged 19 billion yuan for rural road improvement projects, while the local authorities put in 24 billion yuan. Altogether 120,000 km of asphalt (cement) rural roads were improved or widened. Optimization of the agricultural structure has continued. The sown area of grain was 1.1 million hectares more than in the previous year, reaching 105.38 million hectares. China …