China's fiscal spending falls in October from year earlier

[BEIJING] China's fiscal expenditure dropped 5.7 per cent in October from a year earlier, data from the Ministry of Finance showed on Friday, reflecting the government's efforts to put the brakes on spending after a surge in previous months.

Spending growth decelerated after annual rises of 9.1 per cent in September and 6.2 per cent in August.

For the first 10 months, spending was 11.4 trillion yuan (US$1.86 trillion), higher than the 10.2 trillion yuan of the same period a year earlier.

During January-October, money disbursed on grain and oil reserves grew the most, up 21.6 per cent from a year earlier, according to a statement published on the ministry's website, www.mof.gov.cn.

Money spend on the transportation sector rose 15.8 per cent over the same period, among the fastest areas of expenditure.

Beijing has unveiled a slew of targeted measures since April to help shore up the economy, whose growth has slowed. It approved more than US$100 billion worth of railway lines and airport projects in late October and early November.

The ministry's data also showed China's fiscal revenue rose 9.4 per cent in October from a year ago to 1.33 trillion yuan, compared with a 6.3 per cent increase in September.

The downward pressure on economic growth and tax cuts for selected industries could continue to weigh on fiscal revenue in coming months, the ministry said.

Official data showed on Thursday that China's economy lost further momentum in October, with factory growth dipping and investment growth hitting a near 13-year low.

REUTERS