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Premier stresses ample policy room, growth quality(2)

2015-03-15 15:36 Xinhua Web Editor: Yao Lan

"The good news is that in the past couple of years we did not resort to massive stimulus measures for economic growth. That has made it possible for us to have fairly ample room to exercise macro-economic regulation, and we still have a host of policy instruments at our disposal," he said.

China is sticking to the combination of a proactive fiscal policy and prudent monetary policy to balance steady growth and ongoing economic restructuring, experts said.

The M2 money supply, a broad measure of money supply that covers cash in circulation and all deposits, is forecast to grow by around 12 percent in 2015, "but the actual supply may be slightly higher than this projection depending on the needs of economic development," according to the government work report delivered by Li to national lawmakers at the opening of the annual parliamentary session.

China has cut the benchmark interest rates twice and dropped the reserve requirement ratio for banks over the past four months. Some analysts believe more easing moves may be rolled out if necessary.

To shore up growth, the Chinese government also plans to raise the fiscal deficit target for 2015 to 1.62 trillion yuan. That would be 2.3 percent of GDP, up from 2.1 percent in 2014.

"Our proactive fiscal policy must sustain the momentum of economic growth and increase economic returns," the report said..

On the property sector that is important to China's economic growth and local authorities' fiscal revenues, Li said the government encourages people to buy homes for their personal use or buy second homes, hoping to see steady and sound growth of China's real estate market in the long run.

Li also pledged efforts to be made on improving the quality of economic development to make China's growth more sustainable.

"We want to further upgrade China's economy to a medium-high-level of development and maintain China's economic growth at a medium-high speed," Li said.

"We want to pursue a growth that has improved quality and performance. This will help lay a more solid foundation for us to achieve modernization. It will also be China's contribution to global economic growth," he said.

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