Beijing’s Stimulus Measures Propel Tax Revenue Growth Amid Weak Consumption Confidence

Tuesday, 19 November 2024, 04:41

Beijing’s stimulus measures have led to year-on-year growth in tax revenue for the first time this year. In October, tax revenue rose by 1.8%, indicating a positive shift in China’s financial landscape. Increased fiscal spending by local governments and the impact of the Double 11 shopping festival has further strengthened consumption confidence despite the challenges faced by the world's second-largest economy.
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Beijing’s Stimulus Measures Propel Tax Revenue Growth Amid Weak Consumption Confidence

Stimulus Measures Elevate Tax Revenue

Beijing's recent stimulus measures have successfully driven tax revenue growth, marking a significant change in fiscal dynamics.

Year-on-Year Growth in October

  • Tax revenue increased by 1.8% to 1.907 trillion yuan (US$263 billion).
  • Non-tax revenue surged by 40%, boosting total fiscal receipts by 5.5%.

These shifts coincide with improved consumer sentiment, especially evident during the Double 11 shopping festival.

Impact of Local Government Spending

Fiscal expenditure also grew by 10.4% in October, demonstrating increased spending among local governments to stimulate the economy.

  • Growth in spending is aimed at achieving the national economic target of around 5%.

Experts from Guosheng Securities see a significant shift in the central government’s approach, emphasizing the potential for new policies to emerge in the near term.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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