Fiscal revenue keeps slow growth

CNC reporting from Beijing
Added On June 10, 2013

China's fiscal revenue kept slow growth in May due to tempered economic expansion and the country's tax cutting policies.

Official data shows its total fiscal revenue grew 6.2 percent year on year in May, slightly up from the 6.1 percent growth in April.

According to data from the Ministry of Finance on Sunday, China's total fiscal revenue grew to nearly 205 billion U.S. dollars in May.

To break down the numbers, the central government's fiscal revenue rose by 2.6 percent year on year to about 115 billion dollars. It's the first monthly growth for central fiscal revenue since March. The Ministry of Finance says it would be difficult to achieve the full-year target of 7 percent.

Meanwhile, fiscal revenue of local governments grew 11.3 percent to some 90 billion dollars.

In the first five months of this year, the country's fiscal revenue expanded by 6.6 percent from a year earlier to 913 billion dollars.

The pace was 6.1 percentage points lower than the same period of last year.

The Finance Ministry says slow the country's slow economic expansion and tax cutting policies are behind the slow growth rate.

Government data shows China's gross domestic product growth slowed to 7.7 percent in the first quarter, from 7.9 percent in the forth quarter of last year.

Since the beginning of 2012, China has adopted a raft of tax-cutting measures, including a pilot program to replace business tax with value-added tax.

The measure aims to help alleviate burdens for businesses and individuals and serve the country's economic restructuring.

Fiscal revenue in China includes taxes, administrative fees and other government income, including fines and earnings from state-owned assets.
In 2012, China's fiscal revenue saw an increase of 12.8 percent.

Official figures also show the country's fiscal spending climbed 12 percent year on year to 167 billion dollars in May.
Central government spending rose 25.6 percent while the local spending went up 8.9 percent year on year.