Premier Li Keqiang stressed capital efficiency in major projects implementation by local governments and departments at the State Council executive meeting on July 27.

The meeting heard a report on implementation of major projects by local governments and departments and discussed the issue of unused and idle capital.

Implementation of major projects is significant in stabilizing economic growth and improving people’s livelihood. Any capital left unused for two years should be reallocated, and a reward and punishment mechanism should be improved to tackle such inefficiency, according to Premier Li.

Reports from the National Audit Office at the meeting showed that problems of idle capital and low efficiency of project implementation exist in some local governments.

Speaking of such problems, Premier Li said unused capital should be reallocated to local governments that are willing to make efforts to implement major projects but are short on funds.

He stressed rewards and punishments to promote local governments’ enthusiasm to implement major projects.

Amid a complex international situation, China’s economic achievements in the first half of this year were uneasy, and China still faces downward pressure and regional differences, as negative growth in one province can drag down the whole national economy, the Premier noted.

“Under such circumstances, we should make firm efforts to implement major projects and maintain a healthy economic development,” he said.

Premier Li put forward requirements for auditing in the second half of this year, stressing a focus on administrative streamlining, implementation of major projects, and easing tax burdens on enterprises.

The Premier also called for streamlining administration, delegating powers to lower-level governments and improving post-reform regulations to create a better market environment and reduce tax burdens on enterprises.

“We should not only create favorable conditions to promote supply-side structural reform through measures to stabilize economic growth but also unleash major economic growth with further reforms,” he said.