BEIJING (Reuters) – China’s fiscal revenues fell 2.8% in the first five months of 2024 from a year ago, official data showed on Monday, accelerating from a 2.7% decline in the January-April period, as weak demand weighs on the economic recovery. . .
Fiscal spending rose by 3.4% in the first five months, compared to a 3.5% increase in the first four months, according to Ministry of Finance data.
In May alone, fiscal revenues fell 3.2% year-on-year, compared with a 3.7% decline in April, while fiscal spending grew 2.6% versus a 6.1% increase in April, according to Reuters calculations based on ministry data.
China has pledged more fiscal stimulus to support its fragile economy, as an ambitious growth target of around 5% for this year pressures policymakers to stimulate domestic activity in the face of rising trade tensions with the West.
Beijing has begun sales of 1 trillion yuan ($137.82 billion) of long-term special treasury bonds and launched government-backed incentives to stimulate trade in cars and other consumer goods.
But a worsening decline in real estate investment, sales and some key cash measures reaching record levels has raised concerns about persistent weakness in domestic demand.
($1 = 7.2559 RMB)