China Fiscal Revenues, Spending Grow Slower in August

     BEIJING (MNI) - China's fiscal revenues rose in August although at a slower

pace than in July, with tax revenues seeing significant growth due to the stable

performance of the economy and rising prices, according to data released by the

Ministry of Finance on Monday.

     The MOF said fiscal revenues rose 7.2% year-on-year to CNY1.07 trillion in

August, compared with 11.1% growth in July and a 1.7% increase last August. The

MOF attributed the changes mainly to a higher comparison base in the same period

of last year in the non-tax sector and rising commodity prices.

     Tax revenues grew 16% to CNY890.7 billion, compared with a 13.4% increase

in July, while non-tax revenues slumped 22.5% to CNY174.5 billion, compared with

a 2.9% decrease in July.

     The main sub-indexes, including consumption tax, value-added tax (VAT) on

imported goods and property tax revenue, all softened, the MOF said 

     Revenue from consumption tax in August rose 2.9% year-on-year to CNY85.6

billion, compared with 4% growth in July. 

     VAT on imported goods rose 19.1% to CNY136.1 billion after a jump of 22.5%

in July, the MOF said.

     Property tax revenue, mainly from taxes imposed on commercial properties,

rose 13.1% to CNY7.5 billion, compared with growth of 27.1% in July.

     The other main indicators showed robust momentum. 

     Revenue from total VAT in August rose 19.3% year-on-year to CNY390.8

billion, compared with 18.8% growth in July, the MOF noted. 

     Resources tax revenue soared 62.7% to CNY11.1 billion, higher than the

54.9% increase in July. Rising prices of some mineral commodities was the main

contributor, the MOF said, although it did not specify the commodities.  

     Corporate income tax jumped 23.5% to CNY90.1 billion due to the lower

comparison basis last year, after a decrease of 1% in July, the MOF added. 

     Tax refunds on exported products surged 18.8% to CNY104.2 billion, compared

with a 7.7% increase in July, the ministry noted. 

     Local and central government revenues both grew at a slower pace in August,

the MOF said. Central government revenues increased 6.2% to CNY510.6 billion,

3.4 percentage points lower than July's 9.6% rise, while local government

revenues rose 8.2% to CNY554.6 billion, compared with a 12.8% increase in July.

     On a year-to-date basis, fiscal revenues rose 9.8% to CNY12.14 trillion in

the first eight months, compared with 10% growth in the period from January to

July. Central government revenues increased 9.3% to CNY5.75 trillion, higher

than the 9.6% rise in the first seven months, while local government revenues

increased 10.2% to CNY6.39 trillion, compared with an increase of 10.4% in the

first seven months.

     China's fiscal spending in August, meanwhile, rose 2.9% year-on-year to

CNY1.46 trillion, compared with 10.3% growth during the same period last year

and a 5.4% increase in July, the MOF said.

     Expenditures by both local and central governments slowed, the MOF said.

Central government spending increased 5.7% year-on-year to CNY228.9 billion,

compared with a growth of 6.3% in July, while local government spending rose

2.4% to CNY1.24 trillion, compared with an increase of 5.2% in July.

     For the first eight months, fiscal spending rose 13.1% to CNY13.2%

trillion, lower than 14.5% growth through July, the MOF said.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

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