Over Half of China’s Provinces Cut Revenue Targets

More than half of the Chinese mainland’s provincial-level regions have lowered their fiscal revenue growth targets for this year, underscoring mounting pressure on local governments as the property slump drags on and industrial prices stay weak.

Budget reports from the mainland’s 31 provincial-level regions show 18 have reduced their general public budget (GPB) revenue growth targets from last year, while three kept them largely unchanged. Only 10 raised their goals. The GPB is the largest of the four budgets in China’s fiscal system.

Twenty-one regions, including major economic hubs such as Guangdong, Jiangsu and Shanghai, are aiming for modest growth of about 2% to 3%. Expectations are even lower in some inland regions such as Hunan and Inner Mongolia, where targets range from 0.5% to 1.5%. Beijing and six other regions stand out, projecting growth of 4% or more.