China will step up supervision of government bodies in key sectors this year as the government's latest initiative to combat corruption, Premier Wen Jiabao said Tuesday.

Some fields in China were still "prone to corruption" or plagued with "unfair law enforcement and inefficient governance" despite the government's anti-corruption efforts last year, Wen said at a State Council meeting devoted to deploying this year's anti-corruption work.

Wen said unchecked power was the root cause of these problems.

It was important to improve relevant mechanism to fight corruption and ensure clean governance, but it was more important to better implement the mechanism to constrain officials from corrupt conduct, he said.

Wen outlined key areas of the government's anti-corruption fight this year, including government funded projects, state-owned enterprises and financial institutions.

Cutting gov't expenses by 5 percent

Expenses on central government organs would be cut by 5 percent this year, according to the Premier.

Government funded overseas trips, vehicle purchase, and reception expenditure should be reduced consequently, he said.

The number of national conferences held under the name of the State Council or central government departments should be strictly controlled, he said.

And leaders of the State Council or central government departments should refrain from attending ceremonies or forums sponsored by companies, he added.

The government should set up a budgeting system covering all its revenue and expenditure, Wen said.

The government should publicize its public expenditure, its funds used on infrastructure building, and its operational expenses, so its operations could become more transparent and thus enable the public to supervise more effectively, he said.

IRON HAND ON CORRUPTION CASES

The government would continue its determination to crack major corruption cases and those who committed corruption would be severely punished, Wen said.

He called for intensified efforts to trace the fugitives and their illicit money and property, and vowed "not to let those who commit corruption to go unpunished or get a penny out of their illicit gain."

Government officials should strictly follow a code of ethics issued earlier this year by the Communist Party of China (CPC) to ensure clean practice in their work and prevent corruption.

The guidelines specify 52 unacceptable practices, including officials accepting cash or financial instruments as gifts, or officials using their influence to benefit their spouses and children with regards to their employment, stock trading or business.

Enhanced supervision on SOEs

Wen urged enhanced supervision on leaders of state-owned enterprises and financial institutions according to regulations.

"A reasonable proportion" should be maintained between the boss' salary and the employee's. And the income gap between people working in the monopoly sectors should also be kept in a reasonable range with those in other sectors, he said.

The government should also better regulate state-owned enterprises and financial institutions in their investment in the real estate sector, Wen said.

Vice Premier Li Keqiang and He Guoqiang, head of the Communist Party of China (CPC) Central Commission for Discipline Inspection (CCDI), the Party's internal anti-graft body, were also present at the meeting.