Business / Macro

China's fiscal revenue records slowest growth in 23 years

By Zheng Yangpeng ( Updated: 2015-01-30 17:11

China's fiscal revenue last year recorded its slowest growth since 1991, while fiscal expenditure also slowed to a record low not seen since 1987.

Government revenue rose 8.6 percent in 2014 to 14 trillion yuan ($2.25 trillion), according to a statement on the Ministry of Finance's website on Friday, down from 2013's 10.2 percent increase and a peak of 32 percent in 2007.

Public expenditure rose 8.2 percent, the least since 1987.

Special-purpose governmental funds - which aren't included in the fiscal revenue figure - recorded a weaker expansion of 3.5 percent, to 5.4 trillion yuan. That compared with the 39.2 percent growth in 2013.

Land sale revenue, which usually accounts for about three quarters of the total funds, grew just 3.2 percent. That compares with 2013's 47 percent surge. Last year's national property market downturn is the chief reason for the dramatic fall.

With weak fiscal revenue growth, now the focal point is whether it would curb the government's ability to adopt an accommodative fiscal policy, experts said. Failure to do that could put further pressure on the country's overall growth prospects this year.

Hot Topics

Editor's Picks