Fiscal revenue grows slower
By Wang Yanlin |
July 15, 2011, Friday
|
Print Edition
Print Edition
CHINA'S fiscal revenue expanded by a slower pace of 27.6 percent from a year earlier to 1.01 trillion yuan (US$156 billion) in June as the economy cooled, the Ministry of Finance said yesterday.
The slower pace of growth was still acceptable overall due to the country's steady growth and higher prices. The pace of expansion in May was 34 percent.
"A better-than-expected economic growth, higher consumer prices and robust imports supported a strong fiscal revenue," the ministry said in a statement.
The ministry, however, said it expects growth in fiscal revenue to slow further in the second half of this year as China's economy may show signs of moderation, while a higher exemption threshold for individual income tax will reduce revenue collected.
China's gross domestic product gained 9.6 percent annually in the first half of this year, the National Bureau of Statistics said on Wednesday, beating market expectations and helping to calm fears of a hard landing. But the figure weakened from 10.3 percent growth for the whole of last year.
Fiscal revenue in China includes taxes, administrative fees and other sources of government income, such as fines, and income from state-owned assets.
In the first six months, fiscal revenue gained 31.2 percent from a year earlier to 5.68 trillion yuan, or 1.35 trillion yuan more than the same period of last year.
The fiscal spending in the first half rose 31.4 percent annually to 4.44 trillion yuan. Social security and employment took up 576 billion yuan, or up 40.5 percent from a year earlier. Education swallowed 612.8 billion yuan, up 27.8 percent. Spending on medical services jumped 61.4 percent annually to 245.5 billion yuan during the period.
With the implementation of a higher personal income tax threshold from September, growth in fiscal revenue may ease, analysts said.
Income tax, which accounted for about 6 percent of China's fiscal revenue last year, soared an annual 35.4 percent to 355.4 billion yuan between January and June. It outpaced the average fiscal revenue growth of 31.2 percent.
From September 1, China will raise the personal income tax threshold to 3,500 yuan from 2,000 yuan, exempting millions of people from having to pay tax.
The slower pace of growth was still acceptable overall due to the country's steady growth and higher prices. The pace of expansion in May was 34 percent.
"A better-than-expected economic growth, higher consumer prices and robust imports supported a strong fiscal revenue," the ministry said in a statement.
The ministry, however, said it expects growth in fiscal revenue to slow further in the second half of this year as China's economy may show signs of moderation, while a higher exemption threshold for individual income tax will reduce revenue collected.
China's gross domestic product gained 9.6 percent annually in the first half of this year, the National Bureau of Statistics said on Wednesday, beating market expectations and helping to calm fears of a hard landing. But the figure weakened from 10.3 percent growth for the whole of last year.
Fiscal revenue in China includes taxes, administrative fees and other sources of government income, such as fines, and income from state-owned assets.
In the first six months, fiscal revenue gained 31.2 percent from a year earlier to 5.68 trillion yuan, or 1.35 trillion yuan more than the same period of last year.
The fiscal spending in the first half rose 31.4 percent annually to 4.44 trillion yuan. Social security and employment took up 576 billion yuan, or up 40.5 percent from a year earlier. Education swallowed 612.8 billion yuan, up 27.8 percent. Spending on medical services jumped 61.4 percent annually to 245.5 billion yuan during the period.
With the implementation of a higher personal income tax threshold from September, growth in fiscal revenue may ease, analysts said.
Income tax, which accounted for about 6 percent of China's fiscal revenue last year, soared an annual 35.4 percent to 355.4 billion yuan between January and June. It outpaced the average fiscal revenue growth of 31.2 percent.
From September 1, China will raise the personal income tax threshold to 3,500 yuan from 2,000 yuan, exempting millions of people from having to pay tax.
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