China’s fiscal revenue fell 2.8 percent year-on-year to 11.59 trillion yuan (about $1.62 trillion) in the first half of 2024 (H1), according to data from the country’s Ministry of Finance.
Revenue grows after accounting for adjustments
However, after accounting for a higher base due to deferred tax payments for small and medium-sized enterprises last year, and the carryover effects of the tax reduction policy introduced mid-last year, fiscal revenue in H1 actually grew by approximately 1.5 percent year-on-year, the ministry said.
A breakdown of the data showed that the central government collected around 5 trillion yuan in fiscal revenue, down 7.2 percent year-on-year, while local governments collected 6.59 trillion yuan, up 0.9 percent.
Fiscal expenditure rises 2 percentÂ
The country’s fiscal expenditure rose 2 percent during the period to 13.66 trillion yuan. The central government’s fiscal expenditure rose 9.6 percent year-on-year, compared to a 0.9 percent increase in expenditure by local governments.
Prioritizing social welfare, community services
The government has taken measures to ensure people’s well-being and social security are not affected. Fiscal spending on urban and rural community services grew the fastest at 8 percent year-on-year. Moreover, spending on social security and employment increased by 4.2 percent. Spending on agriculture, forestry and water conservancy grew 6.8 percent.
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