China’s budget revenue growth accelerates as economy recovers

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BEIJING, July 14 (Reuters)China’s fiscal revenue growth accelerated in January-June from the first five months, the finance ministry said Thursday, as the economy showed signs of a slow recovery in June from the disruptions induced by the confinement.

First-half tax revenue rose 3.3% year-on-year excluding the impact of value-added tax (VAT) credit refunds, faster than a 2.9% rise in January -May, said Xue Xiaoqian, an official with the Ministry of Finance. a press conference in Beijing.

Tax receipts in June alone increased by 5.3% compared to the previous year after adjusting for VAT credit refunds.

Xue said China’s fiscal revenue is expected to rebound steadily in the second half of this year as the economy improves.

Revenue from government land sales fell 40.01% in June alone, according to Reuters calculations based on official data, after falling 24.03% in May amid a slowing property market .

Tax revenue totaled 10.52 trillion yuan ($1.56 trillion) in the first half, in addition to 1.84 trillion yuan in VAT credit rebates.

Fiscal spending reached 12.89 trillion yuan in the first half, up 5.9 percent from a year earlier.

China has unveiled a series of economic support measures in recent months, including faster issuance of special local government bonds for infrastructure projects, to revive an economy hit by widespread shutdowns that began in late March. .

Chinese local governments issued a net amount of 3.41 trillion yuan of special bonds at the end of June, a second ministry official, Song Qichao, said at the same press conference, as part of a bond quota. specials for 2022 of 3.650 billion yuan.

Sources told Reuters that China will issue an advance 2023 quota for local government special bonds in the fourth quarter, with the new quota likely higher than the 1.46 trillion yuan announced a year earlier.

Data due Friday is expected to show further signs of modest economic improvement, with industrial production picking up and retail sales stabilizing after months of contraction.

($1 = 6.7288 Chinese yuan renminbi)

(Reporting by Kevin Yao, Ellen Zhang and Stella Qiu; Editing by Christian Schmollinger and Jamie Freed)

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