But he also cautioned that such a move is by no means easy.
"This is a reform the government has taken on itself and during the course vested interests will be upset. This is not nail clipping, it's like taking a knife to one's own flesh."
At the same time, Premier Li stressed that restraining the power exercised by public authorities is essential to clean up the breeding grounds for corruption. This is one of the central themes of this year's political sessions.
He also warned sloppy officials who failed to carry out their duties efficiently should be dealt with.
"Officials must be punished for acting irresponsibly. At the same time they will also be held responsible for inaction. There is no room for incompetence or indolence. We also need to improve the accountability system."
On fighting pollution, Premier Li said the focus for this year is to fully implement the newly-revised Environmental Protection Law, that promises to make polluters pay a heavy price for their illegal acts.
"The law must work as a powerful, effective tool to control pollution instead of being 'as soft as cotton candy.'"
One foreign policy question was raised concerning this year's 70th anniversary celebration of the victory of the World Anti-Fascist War. In response, Premier Li urged Japanese leaders to face history squarely.
"Should Japanese leaders correct their stance on history and maintain it that way, there would be new opportunities for China and Japan to improve their relations. As a result, that would lay a firm foundation for the development of bilateral trade and economic cooperation."
The premier also answered questions on the real estate market, financial risks, the easing of China's one-child policy, Hong Kong's political reforms as well as Ukraine and Myanmar.
For CRI, I'm Qi Zhi.