The central government amassed about 5.39 trillion yuan in fiscal revenue, marking a 13.1 per cent YoY increase. In contrast, local governments collected approximately 6.53 trillion yuan, up 13.5 per cent from the previous year. Furthermore, tax revenue soared to over 9.9 trillion yuan from January to June, exhibiting a 16.5 per cent YoY rise.

Finance ministry official Xue Xiaoqian credited the country’s robust economic recovery and the large-scale roll-out of tax refund policies since April the previous year for this rapid fiscal revenue growth, according to local media reports.

Looking ahead, Xue acknowledged the significant role China’s rebounding economy would play in driving future fiscal revenue increases. However, he also warned of a gradual slowdown in monthly growth as tax refunds revert to normal levels in the latter half of 2022, aligning more closely with the growth of the economic sources of taxation.

In addition to revenue gains, fiscal spending increased by 3.9 per cent YoY to 13.39 trillion yuan over the six-month period.

Fibre2Fashion News Desk (NB)