China H1 fiscal revenue dips, expenditure rise slows down
Fiscal expenditure increased 3.4% year-on-year in the first six months
[BEIJING] China’s fiscal revenue dipped 0.3 per cent in the first six months from a year earlier, the finance ministry said on Friday (Jul 25), maintaining the rate of decline seen between January and May.
Fiscal expenditure increased 3.4 per cent year-on-year in the January-to-June period, slower than the 4.2 per cent rise in the first five months, ministry official Tang Longsheng told a press conference.
Fiscal revenue in the first six months totalled 11.56 trillion yuan (S$2.1 trillion) while expenditure came at 14.13 trillion yuan, Tang said.
That resulted in a fiscal deficit of 2.57 trillion yuan for the first six months, according to the data. The figure is subject to revision towards the year-end.
The government has set a full-year budget deficit target of 5.66 trillion yuan, or 4 per cent of gross domestic product.
“Next, the finance ministry will continue to implement a more proactive fiscal policy, accelerate budget execution, improve the efficiency of fund utilisation, and promote a sustained economic recovery,” said Li Dawei, a second finance ministry official.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Tax revenue fell 1.2 per cent in January-to-June period from a year earlier and non-tax revenue grew 3.7 per cent.
China has allocated 69 billion yuan in special bonds for the consumer good trade-ins programme, the third batch this year, another ministry official Wu Gai said.
The government had previously allocated 162 billion yuan in special bonds – out of the annual quota of 300 billion yuan, to support the trade-in scheme.
SEE ALSO
The remaining funds will be issued in October, finance ministry officials said.
Local governments issued 2.16 trillion yuan in new local government special bonds in the first six months, up 45 per cent year-on-year, they said.
The full-year quota for such bond issuance is set at 4.4 trillion yuan.
Friday’s data also showed revenue from land sales by China’s local governments slid 6.5 per cent in the first six months, following a 11.9 per cent drop in January-to-May period.
China’s economy slowed less than expected in the second quarter despite US tariffs, though analysts say that weak domestic demand and rising global trade risks may drive policymakers to introduce additional stimulus measures. REUTERS
Share with us your feedback on BT's products and services
