(Yicai) Aug. 20 -- China's fiscal revenue expanded last month at the fastest clip this year, driven by steady economic growth and lifting the accumulated income in the first seven months after a first-half downtrend.

General public budget revenue, the sum total of tax and non-tax revenues, rose 2.6 percent to CNY2 trillion (USD278.5 billion) in July from a year earlier, according to data released by the Ministry of Finance yesterday. The figure climbed 0.1 percent to CNY13.6 trillion (USD1.9 trillion) in the January to July period from a year ago.

The main economic indicators previously released by the National Bureau of Statistics maintained a steady growth last month, but slowed from June. The value added of large industrial enterprises jumped 5.7 percent in July from a year earlier, while total retail sales of consumer goods rose 3.7 percent, down from 6.8 percent and 4.8 percent year-on-year growth, respectively, in June. Fixed-asset investment increased 1.6 percent in the first seven months, after rising 2.8 percent in the first six months.

China's tax revenue growth has not been fully synchronized with the economic growth in recent years, affected by various factors, including tax reduction policies, price fluctuations, and changes in the structure of tax sources, Hu Jinglin, director of the State Taxation Administration, said recently at a press conference.

Tax revenue, the main component of fiscal income, fell 0.3 percent to CNY11.1 trillion (USD1.5 trillion) in the seven months ended July 31 from a year ago, with the figure picking up in July after rising 5 percent to CNY1.8 trillion (USD250.6 billion) from a year earlier, the Ministry of Finance announced yesterday.

Revenue from value-added tax, the largest category, increased 3 percent in the first seven months from a year ago, corporate income tax fell 0.4 percent, consumption tax climbed 2.1 percent, and personal income tax jumped 8.8 percent.

In addition, land value-added tax and deed tax, which reflect the activity of the real estate market, dropped 17.8 percent and 15 percent, respectively, while stamp duty on securities transactions, which reflects the stock market activity, surged 63 percent.

Despite signs of recovery in fiscal income, China's fiscal deficit is still widening. The general public budget expenditure rose 3.4 percent to CNY16.1 trillion (USD2.2 trillion) in the first seven months, according to the finance ministry.

Editors: Dou Shicong, Martin Kadiev