Beijing yesterday confirmed a plan to abolish 15 ministry-level bodies and axe half of all civil service officials this year in an attempt to stave off an Asian-style financial crisis.
In a bold attempt to cut the tangled mass of bureaucracy, Secretary-General of the State Council Luo Gan, told the National People's Congress of plans to cut the 40-ministry structure into a streamlined 29 ministries and commissions.
'The impact of Asia's financial turmoil has reached the whole world and has posed a severe challenge to our country's economic development,' Mr Luo said.
'The malady that sticks out is the lack of separation between government and enterprises.
'Blind investment and redundant construction have created a large stock of non-performing loans and definite potential financial risk,' Mr Luo added.
Twelve ministries are to be dissolved along with the commissions for state physical culture and sports, for restructuring the economy and for science, technology and industry for national defence.
Four 'super ministries' will be created, absorbing some functions of the defunct departments. They are: The State Commission of Science, Technology and Industry for National Defence - which will use its former name but cover high military technological development; The Ministry of Information Industry; The Ministry of Labour and Social Security; and The Ministry of Land Resources.
