Although the policy tone is largely unchanged from last year, analysts expect authorities to put on more focus on deepening reforms this year, albeit in a gradual and cautious manner.

"The government's emphasis on a proper growth range allows leeways for pushing reform amid a stable macro-environment," noted Chi Fulin, head of the Hainan-based think tank China Institute for Reform and Development.

Among the reform steps planned for 2014, Li announced to set up a deposit insurance system that is considered a precondition for freeing deposit rates, the last and most important step of interest rate liberalization.

The decision came along with repeated promises to expand the floating range of exchange rates and move toward yuan convertibility under capital accounts.

The report said China will overhaul the current financing scheme for local governments to issue bonds, its latest step to contain the mounting debt problems.

Containing local government debt risks has been high on the government's agenda for 2014. It was listed as one of the government's six priorities at a tone-setting economic work conference in December.

Despite various estimates on the size of China's local government debt, the National Audit Office issued its own audit results at the end of last year, which estimated local government debt was 10.89 trillion yuan (1.78 trillion U.S. dollars) as of the end of June 2013.

An emerging consensus is that China's government debt is generally manageable but could get out of hand if its structural problems and lack of oversight are not addressed in a timely manner.

Li's report also detailed specific measures to address overcapacity, a major drag on the economy.

The government aims to reduce outdated production capacity of 27 million metric tons of steel, 42 million metric tons of cement and 35 million standard containers of plate glass.