Caixin
Sep 17, 2022 06:26 PM
FINANCE

China’s Fiscal Revenue Posts First Growth Since March

What’s new: China’s fiscal revenue in August recorded the first year-on-year growth since March, fueled by policies aimed at stabilizing economic growth and as the impact from a tax refund scheme tailed off, according to the Ministry of Finance.

The general public budget revenue in August totaled 1.3 trillion yuan ($186 billion), growing 5.6% year-on-year, according to data published by the finance ministry on Friday.

Revenue from tax grew 0.6% year-on-year, and nontax revenue jumped 33.5%.

The background: The slowdown in China’s economic growth has hit fiscal income, and a new policy requiring local governments to issue value-added refunds to businesses to shore up the economy worsened their budgetary situation.

Nationally, revenue in the general public budget in the first eight months declined 8% year-on-year, although, excluding tax refunds, it grew 3.7%, data from the Ministry of Finance showed.

Besides the tumble in fiscal revenue, local governments’ revenue from land sales has also been curbed by a slump in the real estate market, with some localities slashing spending and selling assets to get through the budget squeeze.

 Read more 
In Depth: To Keep Stimulus Flowing, China’s Local Governments Need a Budget Fix

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Zhang Yukun (yukunzhang@caixin.com) 

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.

Share this article
Open WeChat and scan the QR code
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
PODCAST
Caixin China Biz Roundup: Rape Allegations at Acting School Spark Uproar
00:00
00:00/00:00