Business
17:42, 11-Sep-2017
China's fiscal revenue sees slower growth in August
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Government spending in China grew 2.9% year-on-year in August, while the fiscal revenue has a slow increase, which is dragged by a sharp decline in non-tax incomes, the Ministry of Finance said Monday.
The revenue gained 7.2% year-on-year to 1.07 trillion yuan (about 165 billion US dollar) last month, down from the 11.1% growth recorded in July, according to the Ministry.
The August spending slowed from July’s 5.4% pace, while the revenue growth declined from 11.1%.
Due to a high comparison base in August 2016, non-tax incomes dropped 22.5% to 174.5 billion yuan. However, revenue from taxes surged 16% year on year to 890.7 billion yuan last month, higher than the growth rates for both the first half and July of this year.
VCG Photo
VCG Photo
According to the Ministry, the strong growth in taxes "is mainly driven by factors including the stabilizing economy and rising prices”.
The government spending for the first eight months of the year rose 13.1%, while revenues increased 9.8%.
China has pledged a more proactive and effective fiscal policy in 2017 to support economic growth, with the fiscal deficit set at 3% of its GDP, or 2.38 trillion yuan, for the year, up 200 billion yuan from 2016.
China's GDP grew 6.9% in the second quarter of the year, flat with the previous quarter and above the government's annual target of around 6.5%.
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