September Fiscal Revenues Post 9.2% YoY Increase as Expenditure Growth Slides


The latest official data points to accelerating growth in China’s national fiscal revenues in September on the back of a rebound in inflation.

Data released by the Ministry of Finance on 16 October indicates that nationwide standard public budget revenue was 1.2714 trillion yuan in September, for year-on-year growth of 9.2%, and an acceleration of 2 percentage points compared to August.

Tax revenues posted year-on-year growth of 17.6% – the highest level since the start of the year, while non-tax revenue saw a year-on-year decline of 11%.

National standard public budget revenues for the first nine months of the year posted year-on-year growth of 9.7%, with tax revenues rising by 12.1% to comprise 84.3% of the total, for an increase of 1.2 percentage points compared to the same period last year, and 2.6 percentage points compared to 2016 in full.

Lou Hong (娄洪) from the Ministry of Finance said that national fiscal revenue saw rapid growth in the first three quarters, and that their quality and structure had further optimised due to factors including rising prices, improving corporate profits, an increase in both the price and volume of imports, as well as robust market activity.

Proactive factors for economic performance were continually increasing, and would continue to provide vigorous support to gains in fiscal revenues.

Lou nonetheless expects Q4 fiscal revenue growth to ease, on the back of factors including policies for the reduction of taxes and government service fees, and the high base number set for certain revenue items last year.