China fiscal spending soars amid investment push
BEIJING, July 13 — Annual growth in China's fiscal spending quickened to 17.7 per cent in June from 10.8 per cent in May as the government stepped up efforts to bolster the slowing economy.
The government has been fast tracking some infrastructure investment projects and unveiling incentives for consumers as it seeks to cushion the economy against stiff global headwinds.
Fiscal expenditures of 1.27 trillion yuan (RM598 billion) in June consisted of 1.085 trillion yuan by local governments and 187.3 billion yuan by the central government, the Ministry of Finance said in a statement today on its website, www.mof.gov.cn.
Government spending on the transportation sector surged 44.1 per cent in June year-on-year, while spending on the resource exploration and power sectors rose 22.1 per cent, it said.
Spending on energy conservation and environment protection rose 26.3 per cent, while those on housing rose 36.4 per cent. Expenditures on medical care rose 26.8 per cent and those on social security and employment rose 14.4 per cent, it added.
Fiscal revenues rose 9.8 per cent in June from the same month last year to 1.1 trillion yuan, the ministry said. The growth rate slowed from the annual pace of 13.1 per cent in May.
The ministry blamed the slower revenue growth on China's weakening economic growth as tax receipts lost steam.
China's annual economic growth slowed to its slackest pace in more than three years, highlighting the need for more policy vigilance from Beijing even as signs emerge that action taken so far is beginning to stabilise the economy.
China's annual economic growth slowed to 7.6 per cent in the second-quarter – the sixth successive quarter of slower growth.
Central government incomes rose just 5.6 per cent in June from a year earlier while those of local governments rose 13.1 per cent, it said.
Revenues from the valued-added tax rose 12.7 per cent in June from a year earlier, while incomes from consumption tax rose 4.5 per cent, it said.
Revenues from business tax rose 21.1 per cent while business tax receipts from the real estate sector rose 23.6 per cent, propelled by rising transactions and prices in some cities.
Receipts from corporate income tax rose 10.1 per cent in June from a year ago and income tax from industrial firms fell 1.5 per cent due to falling profits, it said. — Reuters