China's first half fiscal revenue up 27.6%
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China's fiscal revenue rose 27.6 percent in the first six months from a year earlier to 4.33 trillion yuan (639.74 billion U.S. dollars), said the Ministry of Finance (MOF) Thursday.
From January to June, tax revenues increased by 30.8 percent from the same period last year to 3.86 trillion yuan, the ministry said in a statement on its official website.
Of the total, central fiscal revenue grew by 28.6 percent to stand at 2.28 trillion yuan, while local governments collected 2.06 trillion yuan, up 26.5 percent, according to the statement.
The MOF statement said fast economic growth was one of the major factors behind the rapid fiscal revenue growth.
In the first six months, China's economy expanded by 11.1 percent from a year earlier after recording growth of 10.3 percent for the second quarter, the National Bureau of Statistics (NBS) said Thursday.
The rapid fiscal revenue growth was reflected in a higher consumer price index (CPI) and producer price index (PPI), which rose by 2.6 percent and 6 percent respectively in the first half from a year earlier, compared with declines of 1.1 percent and 5.9 percent recorded for the same period last year, the MOF statement said.
The 27.6-percent fiscal revenue growth in the first half was also due to a relatively low comparison base of the same period last year when fiscal revenue declined by 2.4 percent because of the global economic downturn, according to the statement.
Compared with same period period of 2008, fiscal revenue rose by 24.5 percent, which could be translated into an annual growth rate of 11.6 percent from 2008 to 2010, the statement said.
The MOF figures also showed that China's fiscal revenue in June stood at 787.94 billion yuan, an increase of 14.7 percent year on year. The monthly growth rate was down from May's 20.5 percent.
The ministry attributed June's slower growth to a relatively high comparison base with June last year when the fiscal revenue was up 19.6 percent after a decline of 9.9 percent in the first four months and growth of 4.8 percent in May.
The MOF forecast the growth of China's fiscal revenue to continue to slow in the second half as the comparison base was higher for the following months.
In the first half, nationwide expenditure rose 17 percent to 3.38 trillion yuan, with education and social security and employment services being the top two items, according to the statement.
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