China's finance ministry says its fiscal revenues came strong in 2017, thanks to robust economic growth. While new economic drivers helped with revenue growth, fast-rising government spending on public welfare might put the brakes on that. MING TIAN has more.  

It is the first time China's economic growth rate picked up in seven years in 2017. And a faster expansion has led to higher taxation income, according to the Finance Ministry.

Total government revenue came in at 17 trillion yuan, 7.4 percent higher than the year before.

Breaking down the growth, officials say, Beijing's taxation and fees cut, as well as warming foreign demand are behind the increase.

The fundamental driver, they say, is the changing economic structure.

LOU HONG DEPUTY DIRECTOR-GENERAL, TREASURY DEPARTMENT CHINESE FINANCE MINISTRY "High-end manufacturing and service sectors have seen strong tax revenue increase. The rise also comes from leveled-up consumption in sports, internet, and entertainment businesses."

Machinery production and telecommunications saw over 20 percent growth in tax revenues, three times as much as the country's GDP growth. The internet sector saw a whopping increase of 55 percent, thanks to a large population and their mobile devices at hand. The finance ministry said tax revenues are taking pressure this year. Headwinds include uncertainty from foreign trade, commodity prices, and the diminishing effects of policy favors.

Meanwhile, total government expenditure exceeded 20 trillion yuan for the first time.

Where did the money go? China is strategically using its coffers to help with public demand, especially if it benefits the underprivileged and contributes to long term prosperity.

WANG KEBING VICE DIRECTOR-GENERAL, BUDGET DEPARTMENT CHINESE FINANCE MINISTRY "We strengthened our spending on public welfare to secure and raise people's livelihood. We supported targeted poverty alleviation, education reforms, and social security."

Those three areas are on the priority list of government spending, as China tries to distribute public money equitably. All have seen solid growth, surpassing the growth of GDP. With rough figures on both revenues and spending, it is easy to get an idea on the country's balance sheet. The exact figures will not be made public until March during the country's annual Two Sessions. While the Chinese government is definitely running on a deficit, it is important to note the wise collection and expenditure of funds. MT, CGTN, BJ.