We will promote balance between supply and demand of coal, electricity, petroleum, transportation and major raw materials. We will improve the supply structure of coal, oil, power and transportation and coordination between upstream and downstream industries and among different regions. We will ensure adequate market supply during flood season, peak times in summer and winter, the Olympic Games and major holidays. We will improve demand-side management and raise the efficiency of energy use among end users.
2. We will strengthen the position of agriculture as the foundation of the economy and effectively promote the development of a new countryside.
1) Fiscal support for agriculture and the countryside will continue to increase. Funding for rural development will be increased by making adjustments in the way revenue from tax on using arable land for nonagricultural purposes is spent and reforming the way urban construction and maintenance tax receipts are used. We will step up efforts to develop agricultural infrastructure, continuing to carry out projects to retrofit irrigation facilities in large irrigated areas with water-saving equipment, to set up model water-efficient irrigation projects and to upgrade drainage pumping stations in the central region, accelerating efforts to reinforce large and medium-sized dilapidated reservoirs as well as small but important ones, and improving small water conservation facilities. We will support the construction of water supply facilities, power grids, roads and methane facilities in rural areas with the goal of supplying an additional 32 million rural residents with safe drinking water, increasing the number of rural families supplied with methane by 5million and building a group of large and medium-sized methane facilities.
2) We will promote steady growth in the production of major farm products. Arable land will be strictly protected, and protection of basic farmland in particular will be strengthened. We will increase support for major grain producing areas and grain farmers. We will institute the grain strategy project, accelerate development of core grain production areas and begin developing secondary production areas to keep annual grain output stable at about 500 million tons. We will diligently carry out all policy measures to support hog production, dairy farming and oilseed production, stabilize the cotton cultivation area, restore and expand the oilseed cultivation area and continue to support the production of sugar crops. Development of livestock and aquaculture production will be strongly encouraged.
3) The policy of agricultural subsidies will be strengthened and improved. We will continue to provide assistance directly to grain farmers and raise the overall level of general direct subsidies for agricultural supplies in response to price rises, expand the scale of subsidies for growing improved crop varieties and the scope of eligibility for subsidies for purchasing agricultural machinery and tools, and appropriately raise minimum grain purchase prices. Trials of subsidized agricultural insurance premiums will be expanded.