In his 35-page work report, Wen outlined a package plan to cope with the tough economic situation, which included huge government investment, tax reform, industrial restructuring, scientific innovation, social welfare and promoting employment.

Wen said the government will adopt "a proactive fiscal policy" and significantly increase government spending to expand domestic demand.

The government has proposed a 4-trillion yuan (US$585.5 billion) two-year investment plan, for which the central government has pledged 1.18 trillion yuan.

Wen said a total of 908 billion yuan of the central government investment this year will go to projects aiming at improving people's lives, Wen said.

Those projects covered low-income housing, education, health care and culture, energy conservation, environmental protection, technology innovation, key infrastructure construction and post-earthquake reconstruction.

"We must channel government investment to areas where it best counteracts the effects of the global financial crisis and to weak areas in economic and social development, and no government investment will be made in the regular processing industries," Wen said.

(Xinhua News Agency March 5, 2009)