ECONOMY

China’s Fiscal Revenue Rises on Stock Boom but Spending Shrinks

Published: Jun. 23, 2026 12:30 p.m. GMT+8

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China’s general public budget (GPB) revenue grew 6.6% year-on-year in May, buoyed by rising prices and steady economic growth, but GPB spending shrank for the second consecutive month, official data showed Monday.

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China's general public budget (GPB) revenue grew 6.6% year-on-year in May, fueled by rising prices and steady economic growth.
GPB spending shrank 1.6% year-on-year for the second consecutive month, while land sales revenue plummeted 35.8%.
Individual income tax surged 12.4% and securities stamp duty skyrocketed 146%, but domestic consumption tax fell 2%.

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1. China’s general public budget (GPB) revenue grew 6.6% year-on-year in May, while GPB spending shrank for the second consecutive month, according to official data released Monday. [para. 1]

2. The GPB is the largest of the four budgets in China’s fiscal system. [para. 2]

3. The divergence between revenue gains and spending cuts highlights an uneven economic recovery: a booming stock market and stricter tax enforcement are boosting state coffers, but a persistent property slump continues to squeeze local finances. [para. 3]

4. Revenue details from the Ministry of Finance show that individual income tax surged 12.4% in May, and stamp duty on securities trading skyrocketed 146%, fueled by robust capital market activity. [para. 4]

5. In contrast, the domestic consumption tax fell 2%, suggesting sluggish household demand. [para. 5]

6. Outside the GPB, local governments face mounting pressure: revenue from land sales—a crucial source of local funding—plummeted 35.8% in May, dragging down the government-managed funds budget, according to Caixin calculations based on finance ministry data. [para. 6]

7. Meanwhile, GPB outlays slipped 1.6% year-on-year, potentially reflecting a delayed pace of government disbursements rather than outright cuts. However, healthcare spending remained a bright spot, jumping 11.3% in the first five months, partly driven by childcare subsidies. [para. 7]

8. A chart accompanying the data (titled “China’s Fiscal Revenue Stays Firm”) shows the year-on-year change in GPB revenue as a line graph, with the May data point at 6.6%. The y-axis ranges from -30% to 30%, and the note indicates that January and February data are combined. Sources: Ministry of Finance, CEIC. [Chart SVG and text labels]

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Who’s Who

CEIC Data: CEIC Data is a provider of economic and financial data, cited as a source alongside China's Ministry of Finance for the chart on general public budget revenue. The data shows a 6.6% year-on-year revenue increase in May 2025, reflecting fiscal trends amid uneven economic recovery.

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What Happened When

January-February 2026：: January and February data for general public budget revenue are combined.

First five months of 2026：: Healthcare spending jumped 11.3%, partly driven by childcare subsidies.

May 2026：: General public budget (GPB) revenue grew 6.6% year-on-year, individual income tax surged 12.4%, stamp duty on securities trading skyrocketed 146%, domestic consumption tax dropped 2%, land sales revenue plummeted 35.8%, and GPB spending shrank 1.6% year-on-year.