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.
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 (firstname.lastname@example.org)
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