China's State Council announced the improved plans for the country's economic welfare and development on its website on Monday, Shanghai Daily reported.
According to the State Council, the country will "streamline administration and deregulate power to lower levels, promote the yuan’s convertibility under the capital account, and launch a trial scheme to connect the Shenzhen and Hong Kong stock exchanges."
The executive sect further added that the reform targets to stimulate China's development and pledged to carry out the protocols as well as to establish a new system to improve the Chinese market and pursue new potential development.
Data from the National Bureau of Statistics shows that China's economy has slackened to 7 percent in the first quarter of 2015, the undermost level since the global financial crisis, the American news agency CNBC reported.
The situation caused Chinese lawmakers to improve China's economic plans.
"The government vows to cut red tape, loosen controls on market access and investment, and improve pricing mechanisms for public services including medicine and natural gas," the State Council said as quoted by Shanghai Daily.
The Council further said that it will uphold the public-private partnerships to invite private investments into infrastructure construction and public enterprises, as well as support private companies to make the market less monopolized.
A reform in government-owned companies will also be urged by the state.
On the other hand, the budget and taxation is set to have a standardized procedure for the local government to collect funds and follow a system that will warn them earlier about their debt risks.
According to reports, the central government also vowed to resume the application of taxation reform and the augmentation of value-added tax, personal income tax and environmental protection tax.
The development of private banks along with small financial businesses will be boosted, as the state is set to open up its financial sector as well as build a financial policy that will give advantage to the economy.
A guideline that ensures the healthy development of Internet finance will also be implemented.
"The government will further liberalize interest rates, make the yuan more flexible against other currencies and promote the use of the yuan in cross-border settlement," said the State Council.
The urbanization, expansion of capital for city construction, development of the household registration system, and stimulation of rural land reforms to further improve agriculture were identified as the priorities of the reform, the authority added.