China’s fiscal revenue growth gathers pace in November

CHINA’S fiscal revenue rose by 4.3 per cent in November year-on-year, quickening from a 2.6 per cent gain in October, according to Reuters calculations based on official data on Friday (Dec 15).

In the first 11 months, fiscal revenue logged a 7.9 per cent increase from a year earlier, compared with 8.1 per cent growth in the January-to-October period, finance ministry data showed.

Fiscal expenditures grew 4.9 per cent in the first 11 months, compared with a 4.6 per cent gain in the first 10 months, the data showed.

For November alone, fiscal spending jumped 8.6 per cent, versus a 11.9 per cent rise in October, according to Reuters calculations.

The economy is struggling with rising deflationary pressures, mounting local government debt and an ailing property market amid tepid demand both at home and abroad, raising calls for more policy support.

The cities of Beijing and Shanghai further relaxed home purchase restrictions on Dec 14, adding to a series of measures to shore up the sluggish housing market over recent months.

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At an agenda-setting meeting earlier in December, top leaders pledged to step up policy adjustments to prop up an economic recovery in 2024.

“Fiscal policy will do the heavy lifting of supporting growth next year,” Goldman Sachs said in a note after the meeting.

China plans to implement structural tax and fee cuts, and plans a new round of fiscal and tax reforms while optimising the structure of fiscal spending, according to the meeting takeaways. REUTERS