MNI: China Sees Strong Jan-Feb Fiscal Spending, Revenue Growth

     BEIJING (MNI) - China's fiscal spending and revenue recorded double-digit

growth in the January to February period, the Ministry of Finance said

Wednesday.

     The MOF said fiscal spending increased 16.7% year-on-year to CNY2.91

trillion in the first two months of the year, compared with an increase of 17.4%

same period last year. 

     Local government spending remained at a high growth speed, while the growth

of central government spending was relatively slow. Central government spending

increased 3.9% year-on-year in Jan-Feb to CNY353.4 billion, compared with a

growth of 8.1% last year. Local government spending rose 18.8% to CNY2.55

trillion, compared with an increase of 19.1% in the same period last year.

     Fiscal revenues, meanwhile, increased 15.8% year-on-year to CNY3.66

trillion during Jan-Feb period, compared with an increase of 14.9% in the

corresponding period of 2017.

     Central government revenues rose 19.1% to CNY1.82 trillion, the rate seen

in the same period last year, the MOF said, while local government revenues

increased 12.7% to CNY1.83 trillion, compared with a gain of 11.1%. 

     Tax revenues rose 18.4% to CNY3.3 trillion, compared with a growth of 16.6%

in same period last year, while non-tax revenues dropped 3.5% to CNY360.1

billion, the MOF noted.

     Value-added tax increased 22.3% to CNY1.3 trillion, compared with 7.2%

growth same period last year.

     Consumption tax revenues rose 29.5% to CNY293.6 billion, compared with the

0.3% decline during Jan-Feb last year.

     The fluctuations in fiscal revenue and expenditure are quite high during

Jan-Feb period because of the impacts of traditional New Year Holidays, so more

information will be needed to analyze the trends in the data, the MoF said in

the statement on its website.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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