The State Council, or China's cabinet, will begin its seventh restructuring attempt in the past three decades to curb red tape and reduce administrative intervention in the market and social issues.

The number of ministries under the State Council will reduce from 27 to 25 while several departments and agencies are reorganized, according to a plan of institutional restructuring and functional transformation of the State Council, submitted to the national legislative session Sunday.

Having gone through restructuring for six times, "the State Council has established a framework that met the needs of socialist market economy but it still has notable shortcomings," said Ma Kai, state councilor, when deliberating the plan at the session.

"Some departments have power bigger than necessary while in some aspects of governance they are not in place to act," Ma said.

The central government is troubled by duplication of functions, overlapping management, low efficiency and bureaucracy while supervision on administrative power is not fully in place, he said, adding that this has somewhat facilitated corruption and breach of duty.

The most important task of the restructuring plan is to transform and streamline the government functions, he said.

According to the plan, the Ministry of Railways, long in the center of controversy for being both railway service provider and watchdog, will be dissolved into administrative and commercial arms.

The Health Ministry and the National Population and Family Planning Commission will be merged into a new National Health and Family Planning Commission.

The status of the existing State Administration of Food and Drug will be elevated to a general administration in order to improve food and drug safety.

The country's top oceanic administration will be restructured to bring its maritime law enforcement forces, currently scattered in different ministries, under the unified management of one single administration.

The National Energy Administration will be restructured to streamline administrative and regulatory system of the energy sector.

Also, two media regulators, the General Administration of Press and Publication and the State Administration of Radio, Film and Television, will be merged into one to oversee the country's press, publication, radio, film and television sectors. BALANCE AMONG GOVERNMENT, MARKET, SOCIETY

The cabinet reorganization plan aims to build an efficient and law-based government with clear division of power, reasonable distribution of labor, and well-defined responsibility, Ma told lawmakers.

"Departments of the State Council are now focusing too much on micro issues. We should attend to our duties and must not meddle in what is not in our business," the report said.

The reform plan came amid public calls to boost government transparency and efficiency in government operations.

While delivering his last government work report on Tuesday to China's top legislature, Premier Wen Jiabao acknowledged the transformation of government functions has not been fully carried out with some government departments prone to corruption, saying the central government is "keenly aware that we still face many difficulties and problems" in the economic and social development.

Wen vowed to continue transforming government functions, separate government administration from the management of enterprises, state assets, public institutions and social organizations to build a "well-structured, clean, efficient and service-oriented government".

In the plan, the State Council pledged to ensure the market's fundamental role in allocating resources and let social organizations play a better role in managing social issues.

Highlights of China's cabinet reshuffle and government function transformation

China to merge press, broadcasting regulators

China to elevate food, drug agency to general administration
China to merge health ministry, family planning commission
China to restructure National Energy Administration
China to dismantle Railway Ministry