China’s fiscal revenue experienced a 2.6 percent year-on-year decline in the initial seven months of the current year, as revealed by recent official data.Â
The pace of this decrease has moderated from the 2.8 percent decline registered in the first half of the year, according to the Ministry of Finance.
However, the January-July figure showed a 1.2 percent increase after adjusting for factors such as favorable policies for micro, small, and medium enterprises that led to a higher comparative base last year, as well as tax reduction measures.
The data breakdown indicates that the country’s tax revenue decreased by 5.4 percent from the previous year, while its non-tax revenue climbed by 12 percent during the same period.
During the first seven months, the central government collected 5.97 trillion yuan (approximately 839.2 billion U.S. dollars) in fiscal revenue, representing a 6.4 percent year-on-year decline, while local governments collected 7.59 trillion yuan, up 0.6 percent.
The country’s fiscal expenditure expanded by 2.5 percent year-on-year during the January-July period.
This data comes amidst China’s efforts to strengthen its fiscal policy support and ensure the implementation of established policies, with the aim of consolidating its economic recovery.
A financial official previously communicated that the nation would bolster fiscal support for domains tied to the populace’s welfare, and guarantee the application of fiscal and tax policies in realms such as healthcare, employment, elderly care, and education.
The Chinese economy expanded by 5 percent year-over-year in the initial half of 2024.
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