MNI: China Nov Fiscal Spending, Revenues Drop Due Local Gov'ts

     BEIJING (MNI) - Chinese government fiscal spending and revenue both dropped

November due lower spending and a decline in revenues at the local government

level, the Ministry of Finance reported Monday. 

     Fiscal spending dipped 9.1% on a year-on-year basis to CNY1.6566 trillion

in November, with the decline accelerating from the 8% drop recorded in October.

The latest drop was led by a 11.6% y/y slowing of local government spending to

CNY1.4077 trillion. Local governments slowed their expenditures in November

after the amount had grown rapidly in the previous months, the ministry said. 

     In contrast, central government spending increased 8.7% to CNY248.9

billion.

     In the first eleven months of the year, total fiscal spending stood at

CNY17.956 trillion, up 7.8% from the same period a year ago. Both central and

local government spending accelerated from last year: central fiscal spending

grew 7.1% to CNY2.5670 trillion, growth that was 0.3 percentage point higher

than November last year, while local fiscal spending rose 7.9% to CNY15.389

trillion, 0.4 percentage point faster than last November.

     National fiscal income was down 1.4% to CNY1.1385 trillion in November, due

largely to a 3.8% drop of local government revenue to CNY563.5 billion. Central

government revenue, on the other hand, grew 1.1% to CNY575 billion.

     Among national fiscal income sub-categories, non-tax revenue posted the

largest decline, down 12.9% to CNY260.6 billion. Tax revenue rose 2.6% y/y

growth to CNY877.9 billion.

     Resource tax revenues jumped 46.6% to CNY124.8 billion. Revenue from the

import cargo value-added tax and the consumption tax was up 27.6% to CNY1.4551

trillion, of which tariff revenue grew 17.2% to CNY273.8 billion.

     From January to November, total government fiscal income climbed 8.4% to

CNY16.1748 trillion. Central fiscal income rose 8.1% to CNY 7.739 trillion,

while local fiscal income rose 8.7% to CNY8.4358 trillion. Tax revenue was 11.2%

higher than last year, rising to CNY13.6072 trillion, while non-tax revenue

dropped 4.5% to CNY2.5676 trillion.

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

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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