Fiscal revenue of China decreases by 2.6 percent in January-July period

(MENAFN) In the first seven months of 2024, China's fiscal revenue experienced a decline of 2.6 percent compared to the same period last year, according to official data released on Monday. This decrease marks a slight easing from the 2.8 percent drop recorded during the first half of the year. When adjusted for factors such as tax reduction measures and favorable policies for micro, small, and medium enterprises, fiscal revenue actually increased by 1.2 percent. These adjustments account for the higher comparative basis from last year and the impact of various tax relief initiatives.

The breakdown of revenue shows that tax revenue fell by 5.4 percent year on year, while non-tax revenue saw a significant increase of 12 percent. For the period from January to July, the central government collected 5.97 trillion yuan (approximately 839.2 billion U.S. dollars) in fiscal revenue, representing a year-on-year decrease of 6.4 percent. In contrast, local governments' revenue rose by 0.6 percent, totaling 7.59 trillion yuan.

Fiscal expenditure during the same period grew by 2.5 percent year on year. This expansion in spending is part of China's broader efforts to strengthen fiscal policy support and ensure the effective implementation of established economic policies. The government is focusing on enhancing support for sectors crucial to public well-being, including employment, education, elderly care, and healthcare.

Despite these challenges in fiscal revenue, China's economy expanded by 5 percent year on year in the first half of 2024. This economic growth underscores the ongoing recovery efforts and the government's commitment to implementing policies that support economic stability and development.

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