China’s fiscal revenue slipped 2.7% in the first four months of 2024 from a year earlier, after a 2.3% slide in the January-March period, in a further sign of an uneven economic recovery, reports Reuters. Fiscal expenditure rose 3.5% in the first four months, versus a 2.9% gain in the first quarter, according to finance ministry data released on Monday.
For April alone, fiscal revenue fell 3.7% against a 2.4% decline in March, while fiscal spending was up 6.1%, compared with March’s 2.9% fall, according to Reuters’ calculations based on the ministry data. Excluding factors such as last year’s high base and tax cut policies, fiscal revenue in the first four months grew 2%, the ministry said in a statement.
China has set an ambitious economic growth target of around 5% for this year, which many analysts say will be a challenge to meet as prolonged weakness in the property sector and tepid consumer demand remain a drag on the economy.