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China's fiscal revenue drops 2.8% in January-May

Published 06/23/2024, 10:32 PM
Updated 06/24/2024, 12:00 AM
© Reuters. FILE PHOTO: People cross a bridge at Pudong financial district in Shanghai August 11, 2014.  REUTERS/Carlos Barria/File Photo
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BEIJING (Reuters) - China's fiscal revenue fell 2.8% in the first five months of 2024 from a year earlier, accelerating from a 2.7% decline in the January-April period, official data showed on Monday, as weak demand drags on the economic recovery.

Fiscal expenditure rose 3.4% in the first five months,versus a 3.5% gain in the first four months, according to finance ministry data.

For May alone, fiscal revenue was down 3.2% year-on-year, compared with a 3.7% slide in April, while fiscal spending grew 2.6% against a 6.1% 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% 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 ($137.82 billion) in long-dated special treasury bonds and launched government-subsidised incentives to spur trade-ins of autos and other consumer goods.

© Reuters. FILE PHOTO: People cross a bridge at Pudong financial district in Shanghai August 11, 2014.  REUTERS/Carlos Barria/File Photo

But worsening declines in property investment, sales and some key money gauges hitting record lows have stoked concerns over persistent weakness in domestic demand.

($1 = 7.2559 Chinese yuan renminbi)

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