BEIJING: China’s fiscal revenue fell 2.8 per cent in the first five months of 2024 from a year earlier, accelerating from a 2.7 per cent decline in the January-April period, official data showed on Monday (Jun 24), as weak demand drags on the economic recovery.
Fiscal expenditure rose 3.4 per cent in the first five months,versus a 3.5 per cent gain in the first four months, according to finance ministry data.
For May alone, fiscal revenue was down 3.2 per cent year-on-year, compared with a 3.7 per cent slide in April, while fiscal spending grew 2.6 per cent against a 6.1 per cent rise in April, according to Reuters’ calculations based on the ministry’s data.
China has pledged greater fiscal stimulus to prop up its fragile economy, as an ambitious growth target of around 5 per cent for this year puts pressure on policymakers to fire up domestic activity in the face of mounting trade tensions with the West.
Beijing has kicked off sales of 1 trillion yuan (US$137.82 billion) in long-dated special treasury bonds and launched government-subsidised incentives to spur trade-ins of autos and other consumer goods.
But worsening declines in property investment, sales and some key money gauges hitting record lows have stoked concerns over persistent weakness in domestic demand.
