(MENAFN) China's fiscal revenue dropped 1.2 percent year on year in the first two months of 2023, according to the Ministry of Finance. Meanwhile, fiscal spending expanded 7 percent year on year. The ministry stated that the data showed the strength of fiscal spending remained strong, and spending in key areas such as people's livelihood had been well ensured.
The government has been increasing its spending on social security and employment, with a climb of 9.8 percent year on year. Additionally, spending on science and technology has risen 3.9 percent. These areas are crucial for China's continued economic development and social stability.
The central government collected about 2.18 trillion yuan (315.5 billion U.S. dollars) in revenue, down 4.5 percent year on year, while local governments collected 2.39 trillion yuan in revenue, up 2 percent year on year. This shows that the revenue collection has been uneven across different levels of government.
Tax revenue in the first two months went down 3.4 percent year on year. Revenue from value-added tax climbed 6.3 percent, while revenue from consumption tax dropped 18.4 percent. This indicates that the impact of China's economic slowdown is still being felt in certain sectors.
Despite the challenges, the Chinese government remains committed to ensuring continued fiscal stability and growth. The government has been implementing policies to support economic growth, such as increasing infrastructure investment and reducing taxes for businesses. Additionally, the government has been increasing social spending to support the well-being of its citizens.
Overall, the data from China's Ministry of Finance shows that while there are challenges, the Chinese government remains committed to maintaining stability and growth through strong fiscal spending in key areas. The government's efforts to balance revenue collection and spending will continue to play a critical role in China's economic development and social stability.
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