China’s fiscal spending climbed four times the pace of revenue growth in October, emphasizing the country’s efforts to hit growth target this year as a manufacturing and property investment slowdown pushed the economy down.
The Finance Ministry said fiscal spending leaped to 1.35 trillion yuan ($210 billion), up 36.1% from a year ago. Fiscal revenue was at 1.44 trillion yuan, up 8.7%. In the first ten months of the year, spending gained 18.1% and revenue rose 7.7%.
In a statement, the ministry said fiscal revenue will endure difficulties in the next two months, with greater economic pressure, as well as structural tax and fee reductions.
China is turning to raised fiscal outlays as monetary easing, an expansion of policy banks’ capability to lend, and a relaxation on local government financing struggle to stabilize their waning economic growth.
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