BEIJING Wed Mar 18, 2015 7:56am EDT

China will pursue "active" fiscal policy and make "flexible" use of its monetary policy tools to keep its economy growing at a reasonable speed, the Chinese cabinet said on Wednesday.

In its latest attempt to relieve concerns about China's cooling economy, the State Council said it would increase "targeted" adjustments to policies to support the labour market in the world's second-biggest economy.

China's policymakers have characterised their recent moves, which include two interest rate cuts and one reduction in the reserve requirement ratio over four months, as "targeted" adjustments that do not represent a shift to looser policy.

The central bank argues that the rate cuts keep real interest rates stable and do not mark a switch to an easing stance, even though that view is widely disputed by economists in the private sector.

To stabilise China's economy, the cabinet said the state would provide more public goods and services, pay closer attention to water conservation projects, the refurbishment of shanty towns and the construction of railways in central and west China.

Superfluous paperwork for ports and trade would also be abolished to make it easier for companies to do business, the cabinet said.