China posts fiscal surplus, expects deficits

China posted a fiscal surplus of US$38.83 billion between January and April, but expects deficits later in the year, Dow Jones reported. Beijing expects a fiscal deficit this year of US$139.2 billion due to stimulus spending and falling fiscal revenues. Fiscal revenue fell 13.6% year-on-year in April to US$86.41 billion, a steeper fall than the 0.3% decline in March. “As revenue falls and pressures for spending increases without pausing, the situation whereby fiscal revenue won’t cover spending will gradually become clear. The full-year fiscal revenue and spending situation will be tough,” the Ministry of Finance said in a statement posted on its website. The government said public spending would increase as projects in the budget were implemented; spending had been restrained in the first few months of the year.