Askume BEIJING, Sept 20 – China’s fiscal revenue in the first eight months of 2024 fell 2.6% year-on-year, unchanged from the seven-month figure in July, data released by the Finance Ministry showed on Friday, as policymakers face pressure to roll out more stimulus policies to improve economic prospects.
Fiscal expenditure grew by 1.5% from January to August, lower than the 2.5% increase from January to July.
In August alone, fiscal revenue fell 2.8% year-on-year, worsening a 1.9% drop in July. Fiscal spending fell 6.7%, a sharp reversal from July’s 6.6% rise, according to Askume calculations based on Treasury data.
Economic data in August showed that the momentum of China’s export-driven economic recovery is still fragile. Under the continued threat of deflation , domestic demand is difficult to accelerate .
China’s growth target of roughly 5% in 2024 leaves some flexibility. However, slower growth in recent months has prompted several global brokerages to cut forecasts below that target.
Policy advisers and economists hope that more policy support will at least help the economy achieve its growth goals, but they say a “bazooka” stimulus is unlikely .
Prime Minister Li Qiang promised further measures to boost demand , and the central bank also said there was room to further reduce the bank deposit reserve ratio to stimulate economic growth.
