China's fiscal revenue falls 2.6% in Jan-Jul amid economic growth struggles

China's fiscal revenue fell 2.6 per cent in the first seven months of 2024 from a year earlier, narrowing slightly from a 2.8 per cent slide in the first half, finance ministry data showed on Monday, as the economy struggles for a pick-up in growth.
 

Fiscal expenditure grew 2.5 per cent in the January-July period, versus a 2 per cent increase in the first half.
 

For July alone, fiscal revenue fell 1.9 per cent on year, narrowing from a 2.6 per cent decline in June, while fiscal spending jumped 6.6 per cent, compared with a 3 per cent fall in June, according to Reuters' calculations based on the ministry's data.
 

Fiscal revenue has been running at low levels, partly due to a high base last year, state media reported, citing the finance ministry.

The ministry said in a statement that macro-policy implementation in the coming months and the fading year-earlier effects will "underpin fiscal revenue growth." It also expected fiscal spending to steadily rise.
 

July economic data, including a fall in household loans and a slowdown in industrial output growth, points to underlying demand weakness and the need for bolder stimulus measures, analysts have said.
 

China's leaders signalled at a key policy meeting at the end of July that fiscal support for the rest of the year will "focus on consumption", days after they unveiled plans to support trade-ins for consumer goods.

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