BEIJING has unveiled a package of tough measures to restore the central Government's powers over national finances. And the Chinese Communist Party is set to revise its eight-month-old ''state doctrine'' of the socialist market economy by re-emphasising state control over the economy. In internal meetings in the run-up to an economic summit that will be convened within the week, Executive Vice-Premier Zhu Rongji and senior ministers have disclosed measures to reverse the drain of power and funds from the centre to the localities. Taking the cue from Mr Zhu, the Finance and Economic Committee of the National People's Congress (NPC) yesterday also put forward recommendations on restoring fiscal discipline. Mr Zhu, who has taken over the banking portfolio from the deposed governor of the People's Bank of China, Li Guixian, will also spearhead the first major overhaul of the financial system since 1949. Sources close to the State Council said top of Mr Zhu's agenda was restoring the central Government's macro-economic control mechanisms. The State Planning Commission (SPC), whose powers had earlier been cut, has been given new authority in the programme of ''curing and rectifying the economy'', the theme of the impending summit of ministers and provincial governors. SPC chief Chen Jinhua, a former vice-mayor of Shanghai, is drafting more than 10 measures to boost Beijing's macro-economic powers. For example, the country's four specialised banks, including the Bank of China, have been asked to ''chase back'' funds they had illegally made available to non-financial institutions, including the nation's mushrooming quasi-private and ''underground'' banks. Local governments and enterprises which have raised funds without government approval would be asked to transfer the money to state banks. Tough steps to restructure markets including those of real estate, stocks and bonds, futures, and investments will also be discussed at the summit. One measure reportedly being mooted is putting a ceiling on the proportion of the budgets of local administrations that can be used for real estate and stocks-related activities. The vice-chief of the NPC's Finance and Economic Committee, Li Hao, yesterday unveiled an austerity package which is believed to reflect the views of Mr Zhu and Mr Chen. Foremost among the measures is strengthening tax collection and preventing local authorities from taking their own initiative in lowering the levies. ''We must adopt effective means to ensure that tax revenues and the commensurate tax base be expanded,'' the state-run China News Service quoted committee members as saying. Mr Li also proposed strict control over the ''excessively fast'' increase in government expenditure. ''We must insist on spending within our means and strengthening controls over the budget,'' the committee said. The third suggestion is to ''rectify the monetary order and tighten up financial discipline''. Mr Li and other members specifically mentioned the need to stop the disorderly raising of funds by non-state units, and ensuring that enterprises pay their full taxes punctually. A thorough restructuring of the banking system is expected to begin upon the official announcement of Li Guixian's ''resignation'' tomorrow. Economic analysts said while the powers of the central bank would be boosted, Mr Zhu was in favour of converting at least some operations of the specialised banks into Western-style financial institutions. This meant, for example, that funds would only be lent based on credit worthiness, not on the political needs of the day. Meanwhile, Chinese sources said under the direction of President Jiang Zemin, a document called Certain Questions on the Establishment of a Socialist Market Economic System was being drafted. The document is expected to set forth principles that will ensure that the market economy be developed without ''dislocations'' like hyperinflation and loss of central control. The sources said the paper, which is being written by think-tanks reporting to Mr Jiang, would be endorsed at the Third Plenum of the Central Committee, to be convened around October. ''The document amounts to toning down [patriarch] Deng Xiaoping's obsession with high speed and market elements, stressing instead a judicious balance between market forces and macro-level control,'' a senior Chinese source said. ''The resolution on the socialist market economy endorsed by the 14th Congress last October has been revised.'' While talking to prominent non-communist politicians yesterday, Mr Jiang hinted that the pendulum had swung back towards adequate degrees of government intervention. ''Accelerating the building of state macro-level controls is an important part of building the socialist market economy and also an important step in deepening the reform,'' the party general secretary said. ''The market economy must necessarily have a comprehensive and forceful system of macro-level adjustments and controls.'' Pointing to some ''glaring contradictions and problems'' in the economy, Mr Jiang decried ''areas in the existing economic system that have not been put in order''. Speaking on the same occasion, Mr Zhu said: ''The country's economic development must be maintained in a stable and co-ordinated manner if the reform is to be further deepened. ''Macro-controls will be strengthened through economic and legislative means, and necessary administrative means will be adopted as a supplement.'' At the same time, the Chinese leadership has tried to assure the outside world that the austerity measures will not precipitate a sharp brake. The Chinese-run Hongkong daily Wen Wei Po yesterday quoted an ''authoritative source'' as saying Beijing was aware that certain cadres might seek to reinstate old-style planning under the guise of restructuring. Meanwhile, a deputy mayor of Guangzhou has hailed the expected re-structuring of the leadership of the central bank as ''necessary'' for economic development. ''A re-structuring in the bank's top leadership is necessary for China's economic development. It will improve the performance of the country's financial operation,'' said Wu Liang. Asked about the seriousness of the effect of the country's credit tightening on Guangzhou, he said: ''As for development capital for Guangdong, one-third of it comes from banks, one-third from foreign investment and one-third from local [residents].'' He said the city's financial situation was sound, with bank savings rising annually by two-digit percentage points and bank lending level normal. There was no overheating in Guangzhou's economy, Mr Wu said. ''There's no overheating in securities investment because no Guangzhou companies are listed. There is no overheating in the property market, either. The city's economy is fast developing in a healthy and co-ordinated manner,'' he said. Admitting that there were speculative activities in the property market, he said the Government would meet regulations to prevent huge profit-making from property transactions.