CCTV9英语新闻：China's fiscal income rises 6.3 % in Jan.-Feb.

China's fiscal data shows higher growth in spending than income in the first two months of 2016, creating more room for government debt.

 

China's fiscal income in the first two months of this year grew 6.3 percent from a year ago, at 2.7 trillion yuan. Income at both the central and local government levels expanded with local revenues 8 percentage points higher than those of the central government.

 

"There are two reasons. The growth of local business taxes was good, reaching 6.5 percent. And on the other hand, tax revenues related to real estate are all local tax income. For example, the land value added tax and farmland conversion tax all increased over 10 percent, and pushed the local income higher," said Bai Jingming, deputy director of Chinese Academy of Fiscal Sciences.

 

Meanwhile, China's fiscal spending in the first two months jumped 12 percent from a year ago. China also raised its budget deficit target for this year.

 

"This year's budget deficit is 500 billion yuan more than last year, mainly for offsetting the tax cut. We must guarantee the spending. The higher deficit is to ensure the growth of livelihood expenditures. And it will also boost demand and supply, so as to drive the economic restructuring," Bai said.

 

Premier Li Keqiang said at the two sessions that the central government would moderately expand the public deficit and reduce taxes to support economic growth.