China’s Ministry of Finance reported that national government fund budget revenue fell 21.2 percent year on year in the first seven months of 2026, reflecting continued weakness in local government finances. While central government fund revenue increased 6.8 percent, local government revenue fell 24.8 percent, with revenue from state-owned land-use rights declining 30.8 percent.
Tax revenue, often viewed as an indicator of economic activity, increased 6.7 percent during the same period. Domestic VAT revenue rose 6.1 percent and corporate income tax increased 7.2 percent, while personal income tax grew 14.9 percent. However, domestic consumption tax declined 2.2 percent, and deed tax revenue fell 14.5 percent, pointing to continued weakness in the property market.
Revenue from state-owned land-use rights has declined for four consecutive years since 2022, as the prolonged property downturn has sharply reduced demand for land and weakened land prices. Local governments have historically relied heavily on land sales to finance public spending.
Source: Central News Agency (Taiwan), August 22, 2026
https://www.cna.com.tw/news/acn/202608220043.aspx