Fiscal cushion to sustain Q2 economic momentum

Steady increase in revenue to provide leeway against external headwinds

Substantial growth in China's fiscal revenue during the first four months of this year and the rapidly improving financial climate are expected to give policymakers more leeway to issue policies that can sustain growth momentum in the second quarter, experts said on Tuesday.

The robust growth in fiscal revenues will allow policymakers to fine-tune policies in order to ensure stable growth and withstand unexpected headwinds and risks in the short-term, such as trade frictions and the financial deleveraging campaign, said Wendy Chen, a senior economist with Nomura Securities.