Better support for real economy

ACCORDING TO OFFICIAL DATA from the Ministry of Finance, the national general public budget income in the first five months is 8.99 trillion yuan ($1.3 trillion), up 3.8 percent compared with that of last year, but the growth is slower than that of the first four months. Rednet.cn comments:

The financial income growth of various provincial-level administrative regions also slowed and some even had minus growth. With the steady growth of the Chinese economy, government fiscal revenue has grown quite quickly in the past few years. In 2018, the national general public budget income reached 18.3 trillion yuan, 6.2 percent higher than that of 2017, while the national general public budget expenditure was 22.1 trillion yuan, up 8.7 percent on that of the previous year.

In other words, China's national fiscal revenue and expenditure are in quite healthy states and it is fully capable of coping with any changes in the short term. The slowdown in local financial income growth is mainly caused by the major cuts in taxes and administrative fees. That in turn is boosting the real economy and providing better support to small and medium-sized enterprises, which will be able to save money from taxes and spend more on R&D and marketing.