(Yicai Global) April 21 -- China’s fiscal revenue rose 8.6 percent in the first quarter from a year earlier thanks to steady economic recovery and higher factory gate prices in January and February, according to official figures.

Fiscal revenue, the money the government collects through taxes and non-taxes, was CNY6.2 trillion (USD965.6 billion) in the three months ended March 31, finance ministry data showed yesterday.

March’s growth rate slowed from a 10.5 percent clip in January and February, but was faster than the 3.8 percent forecast for this year, because of Covid-19 outbreaks, tax breaks and fee cuts, and the high base number in the same period a year ago.

General public expenditure totaled CNY6.4 trillion, up 8.3 percent, in the first quarter, with spending in key areas such as science and technology, education, social security and employment, and health. Spending on science and technology jumped 22.4 percent, while that on education rose 8.5 percent.

Quarterly tax revenue came in at CNY5.2 trillion, up 7.7 percent from a year earlier. Value-added tax, the government’s largest source of fiscal revenue, rose 3.6 percent to CNY1.9 trillion, buoyed by growth in industrial value added and factory gate prices. But tax deferrals for micro and small manufacturers weighed on the gain.

Revenue from corporate income taxes jumped 9.8 percent to CNY1.1 trillion, mainly because of the stable economic pickup and profit growth at industrial companies.

Revenue from individual income taxes stood at CNY464.5 billion (USD72.4 billion), up 16.5 percent. VAT and consumption tax on imported goods rose 24.2 percent and 6.4 percent to CNY534.6 billion and CNY77.4 billion (USD12 billion), respectively.

Non-tax revenues soared 14.2 percent to CNY958.5 billion, as some regions put idle assets to good use and because special oil revenue and special mineral resources revenue jumped, driven by surging energy and commodity prices.

Local government income from the sale of land use rights slumped 27.4 percent to CNY1.2 trillion, mostly because some developers were more cautious as real estate sales slowed amid buyer restraint.

Editor: Futura Costaglione