BEIJING (Reuters) – China’s tax revenue fell 2.8% in the first five months of 2024 from a year earlier, accelerating from a 2.7% drop in the January-April period, official data showed on Monday , as weak demand slows the economic recovery. .
Fiscal spending increased 3.4% in the first five months, compared to an increase of 3.5% in the first four months, according to data from the Ministry of Finance.
In May alone, tax revenues fell 3.2% year-on-year, compared to a 3.7% drop in April, while fiscal spending grew 2.6% compared to a 6.1% increase in April , according to Reuters calculations based on ministry data.
China has promised more fiscal stimulus to shore up its fragile economy, while an ambitious growth target of around 5% this year puts pressure on authorities to boost domestic activity amid rising trade tensions with the West.
Beijing began sales of 1 trillion yuan ($137.82 billion) in special long-term Treasury bonds and launched government-subsidized incentives to stimulate the trade in cars and other consumer goods.
But worsening declines in real estate investment, sales and some key monetary indicators hitting record lows have fueled concerns about persistent weakness in domestic demand.
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