(Yicai) May 21 -- China’s broad fiscal revenue rose for the first time this year in the four months ended in April, as faster tax income growth offset a continued slump in government fund revenue.

Broad fiscal revenue, which includes general public budget revenue and government fund budget revenue, climbed 0.4 percent from a year earlier to CNY9.36 trillion (USD1.4 trillion), China’s finance ministry said yesterday.

General public budget revenue rose 3.5 percent to CNY8.34 trillion, while government fund budget revenue fell 18.9 percent to CNY1.02 trillion, according to the ministry.

The turnaround points to improving fiscal income momentum, though pressure from the property market remains. Broad fiscal revenue fell 0.1 percent in the first quarter, narrowing by 1.3 percentage points from the decline in the first two months.

Tax Revenue Growth Accelerates

A key driver was faster tax revenue growth. National tax income climbed 3.9 percent to CNY6.81 trillion in the first four months, accelerating by 1.7 percentage points from the first quarter, ministry data showed.

China has gradually phased out outdated tax and fee preferential policies in recent years. Starting April 1, the country scrapped value-added tax export rebates for almost 250 products, including photovoltaic modules, and cut the export rebate rate for battery products to 6 percent from 9 percent.

The cancellation of those export rebates was the biggest contributor to April’s tax revenue growth, adding 0.7 percentage point to cumulative tax revenue growth in the first four months, China Galaxy Securities said in a recent research report.

VAT and corporate income tax revenue also improved significantly, buoyed by higher producer prices for industrial goods, the report showed. VAT revenue growth quickened to 5.9 percent in the first four months from 4.9 percent in the first quarter, while the decline in corporate income tax revenue narrowed to 0.5 percent from 5.6 percent.

On the spending side, China’s broad fiscal expenditure rose 0.4 percent to CNY12.02 trillion (USD1.8 trillion) in the first four months. General public budget expenditure grew 1.3 percent to CNY9.48 trillion, while government fund budget expenditure dropped 2.7 percent to CNY2.54 trillion.

Broad fiscal expenditure exceeded revenue by about CNY2.66 trillion in the period, reflecting China’s continued proactive fiscal policy to support stable economic growth.

Editors: Dou Shicong, Emmi Laine