Implementing Opinions of the State Council on Motivating Major Social Groups to Boost the Income of Rural and Urban Residents

Implementing Opinions of the State Council on Motivating Major Social Groups to Boost the Income of Rural and Urban Residents
Implementing Opinions of the State Council on Motivating Major Social Groups to Boost the Income of Rural and Urban Residents

Guo Fa [2016] No.56

October 10, 2016

People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and all ministries and commissions of and all institutions directly under the State Council,

Increasing the income of urban and rural residents is an important goal of building a moderately prosperous society in all respects, which reflects the inevitable requirement of the essence of socialism. Making every effort to increase residents' income was put forward at the 18th National Congress of the Communist Party of China (CPC). Forming a reasonable and orderly pattern of income distribution was proposed at the Third Plenary of the 18th CPC Central Committee. It was proposed at the Fifth Plenary Session of the 18th CPC Central Committee that on the basis of making development more balanced, inclusive and sustainable, gross domestic product (GDP) and the per capita income of urban and rural residents will double by 2020, compared with 2010. The following implementing opinions are hereby put forward in accordance with the decisions and deployments of the CPC Central Committee and the State Council, in order to build a fair incentive environment, develop more channels for employment, and propel social groups to create social wealth by relying on their own efforts and wisdom and sharing development dividends.

I. General Requirements
1. Basic situation.
Since the reform and opening up, the income of urban and rural residents in China has been increasing rapidly, and the structure of income distribution has been improving. From the decentralization of power and transfer of profits and allowing certain people and regions to become prosperous first to the participation of factors in distribution, a distribution system adapted to the situation of China has been established basically, and income distribution policies have promoted economic and social development and propelled social groups to create social wealth by relying on their own efforts and wisdom and sharing development dividends, which inject power and vitality into the deepening of reform and opening up.
At present, the new normal of economic operation has more evident features; new technologies, new industries and new business forms are developing more rapidly; and new jobs are being constantly created by cultivating and strengthening new driving forces and transforming and upgrading traditional driving forces, thus providing strong support for facilitating the steady growth in the income of urban and rural residents. However, affected by multiple factors at home and abroad, pressure from the economic downturn is spreading to the field of income distribution. It is a long-term, arduous task to reduce the cost of economic operation and maintain medium- and high-speed economic growth while boosting residents' income, improving people's well-being and achieving synchronous growth in residents' income and economy and synchronous increase in labor remuneration and labor productivity. Meanwhile, the following problems still exist: part of the workforce is faced with a lack of human capital accumulation and difficulty in increasing income; a proportion of market players take a wait-and-see attitude; some regions have no strong driving forces for increasing industry income; and some income distribution policies are less targeted and focused. To facilitate the settlement of the relevant problems, it is imperative to further deepen the reform of the income distribution system, adjust and optimize income distribution policies, develop more channels for employment and entrepreneurship, and strive to create a fair incentive environment.
2. Guidelines.
Fully implement the spirit of the 18th CPC National Congress and the Third, Fourth and Fifth Plenary Sessions of the 18th CPC Central Committee, thoroughly carry out the spirit of a series of important speeches delivered by the General Secretary Xi Jinping, plan as a whole and promote the general layout of "Five in One", coordinate and promote the strategic layout of "Four Comprehensives", firmly set up and implement development philosophies of innovation, coordination, greening, opening up and sharing, follow decisions and deployments of the CPC Central Committee and the State Council, uphold people-centered development thoughts, and achieve the goal that development is for the people and by the people and its fruits shall be shared among the people. By centering on speeding up the implementation of the strategy of innovation-driven development, pushing forward with public entrepreneurship and innovation, fostering new driving forces for development, and transforming and upgrading traditional driving forces, make efforts to advance the supply-side structural reform, continue to deepen the reform of streamlining administration, delegating powers, improving regulation and optimizing services, further deepen the reform of the income distribution system, enhance incentive and guiding roles of income distribution policies, take measures by groups, and constantly inspire all workers' enthusiasm, initiative and creativity so as to realize the mutual promotion of economic growth and boost residents' income, and enable all the people to feel a stronger sense of gain in the co-construction and sharing of development and proceed by steady steps towards common prosperity.
3. Basic principles.
Insisting on the combination of multiple incentive methods. Give both material incentives and spiritual incentives, and synthetically adopt multiple incentive means including increasing wages, strengthening the protection of rights, optimizing rewards for assessment, improving professional skills, and raising social identity to mobilize the enthusiasm, initiative and creativity of different groups. Perfect the performance appraisal system and tie incentives with appraisal.
Insisting on the combination of multiple channels for boosting income. Take multiple measures simultaneously, continuously develop more channels for boosting the income of residents, strive to increase wage income and operating income, reasonably raise transfer income, effectively protect equities, creditors' rights, real rights, intellectual property rights and other intangible property rights, and try hard to enhance residents' property income.
Insisting on the combination of boosting income while reducing cost. Effectively reduce labor costs such as social insurance premiums and institutional costs hindering labor mobility, help market players to go forward with their burdens discarded, enhance the ability to create jobs, and practically increase residents' income on the basis of improving quality and benefits of economic development, raising labor productivity and reducing enterprises' comprehensive costs.
Insisting on the combination of encouraging people to create income and become rich while narrowing the income gap. In primary distribution, encourage all the workers to create income and become rich by honest, diligent and creative work; meanwhile, improve tax policies, social security and other regulating methods for redistribution, regulate the order of income distribution, provide practical guarantees for the basic livelihood of people in financial difficulties, and effectively inhibit people from earning profits by non-market factors, thus continuously narrowing the income gap between different groups.
Insisting on the combination of actively taking actions and doing what is possible. While concentrating more financial resources on guaranteeing people's livelihood, take such factors as national conditions, development stage and economic cycle into overall consideration, develop goals and tasks as well as policies and measures for which financial support can be provided continuously and under which social expectations can be mastered, never tantalize or raise idlers, practically improve welfare benefits on the basis of sustainable growth in the economy and financial resources, and stimulate creativity by public entrepreneurship and innovation, so as to enhance the sustainability of increasing residents' income.
4. Main objectives.
By 2020, the urban employment scale will be gradually expanded, the labor productivity will be continuously improved and the quality of employment will be steadily enhanced; the per capita income of urban and rural residents will double compared with 2010; the macro income-distribution structure will be optimized further, and the proportion of residents' disposable income to GDP will rise continuously; and the income gap between domestic residents will be sustainably narrowed, the proportion of middle-income earners will be raised, all the rural poor will escape poverty under the current standards, and the pattern of co-construction and sharing will take initial shape.

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