2nd LD-Writethru: China 2014 fiscal revenue growth at 23 year low
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E-mail Xinhua, January 30, 2015
China's annual fiscal revenue growth dropped to a 23 year low of 8.6 percent in 2014 as the economy weakened, the Ministry of Finance said Friday.
Fiscal revenue stood at 14.04 trillion yuan (2.3 trillion U.S. dollars), according to the ministry website.
China's economy grew 7.4 percent last year -- its weakest expansion in 24 years -- due to slowing domestic demand and a fragile global market.
The ministry said fiscal revenue was hurt by weak factory output, consumption, investment and corporate profits.
Prices at factory gates have seen consecutive monthly declines, which also contributed to the drop in fiscal revenue growth.
A weak housing market and tax cuts also weighed on fiscal revenue.
Last year, fiscal expenditure rose 8.2 percent from one year earlier to 15.17 trillion yuan.
Expenditure on education saw a rise of 4.1 percent; on science and technology 3.4 percent; on medical services 9.8 percent; on social security and employment 9.8 percent; and on housing 10.9 percent.
This year it is expected China will continue to face slower growth in fiscal revenue and rising fiscal expenditure, due to a weakening economy, the country's urbanization drive and industrial structure adjustments that need funding, said Gao Peiyong, a fiscal expert with the Chinese Academy of Social Sciences.
Finance Minister Lou Jiwei said at a national work meeting last month that fiscal revenue will grow at a medium-to-low speed in the years to come.
Despite slower growth in fiscal revenue, China pledged to stick to a proactive fiscal policy in 2015 while making it more forceful, which means the government will do its best to reduce tax burdens on companies and continue to improve people's lives. Endit
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