According to a recent article in People’s Daily, China’s Ministry of Finance recently released statistics showing that, in the first two months of 2015, the growth in China’s fiscal revenue slowed down sharply, while expenditures increased.
In the first two months of 2015, fiscal revenue grew 3.2 percent year on year, reaching 2.57 trillion yuan (approximately US$417.5 billion). Excluding the transfer of government funds, the growth rate was 1.7 percent. Revenue from taxation was 2.24 trillion yuan (US$360 billion), a 0.8 percent increase year on year. This is a historical low, said Bai Jingming, an official from the Ministry of Finance.
Meanwhile, expenditures rose to 1.89 trillion yuan (US$300 billion), an increase of 10.5 percent year on year, with a 52 percent increase for transportation, an increase of 21.2 percent for housing, 15.6 percent for social security and employment, and 14.5 percent for education. The recent Budget Report of the Ministry of Finance that the third session of the twelve National People’s Congress approved set the target for fiscal revenue to grow at 7.3 percent in 2015. “Based on the current situation, it will be very difficult to achieve the annual revenue growth target," said Bai Jingming.
Source: People’s Daily, March 17, 2015