(Yicai Global) Oct. 6 -- With China's economy growing steadily in the 10 years through 2021, fiscal revenue grew at an average annual pace of 6.9 percent to a total of CNY163 trillion (USD22.92 trillion) in the period.
Public budget revenue exceeded CNY10 trillion (USD1.4 trillion) for the first time in 2011 and doubled to more than CNY20 trillion last year. Meanwhile, fiscal expenditure jumped to CNY24.63 trillion in 2021 from CNY12.6 trillion in 2012, totaling CNY193.64 trillion in the past decade after growing an average of 8.5 percent a year.
Fiscal expenditure was higher than fiscal revenue each year, supporting economic operation in a reasonable range to expand investment and demand.
In the past decade, fiscal revenue gradually slowed from double-digit growth and entered a single-digit growth trend as the economy entered a new normal, the Covid-19 pandemic broke out, and the international situation became more complex in recent years.
The government adopted an active fiscal policy, including introducing large-scale tax cuts and fee reductions and special bonds to stimulate market vitality and reduce the burden on enterprises.
The total amount of new tax cuts and refunds stood at CNY11 trillion in the past decade, and it is expected to be CNY2.64 trillion (USD372.3 billion) this year, according to the State Taxation Administration. It will be almost CNY14 trillion between 2012 and 2022, equalling 2014’s fiscal revenue.
To head off debt risks, China also started to allow local governments to issue new special bonds in 2015. They climbed from less than CNY100 billion (USD14.1 billion) in 2015 to CNY3.5 trillion last year, and will likely exceed CNY4 trillion this year.
Editors: Shi Yi, Futura Costaglione