BEIJING (Reuters) – China’s fiscal revenue fell 2.8% annually in the first five months of 2024, official data showed on Monday, accelerating from a 2.7% decline from January to April as weak demand weighed on the economic recovery.
Data from the Ministry of Finance showed that fiscal expenditure increased by 3.4% in the first five months and 3.5% in the first four months.
Reuters calculated based on data from the Ministry of Finance that in May alone, fiscal revenue decreased by 3.2% year-on-year, while it fell by 3.7% in April; fiscal expenditure increased by 2.6%, compared with 6.1% in April.
China has pledged to step up fiscal stimulus to shore up its fragile economy, with an ambitious growth target of around 5% this year putting pressure on policymakers to stimulate the domestic economy amid rising trade tensions with the West. Activity.
Beijing has begun issuing 1 trillion yuan ($137.82 billion) of long-term special government bonds and rolled out government subsidy incentives to spur trade-ins of cars and other consumer goods.
But declines in real estate investment, sales and some key currency indicators worsened to record lows, raising concerns about continued weakness in domestic demand.
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