(Yicai) Nov. 13 -- China’s government spending on procurement remained above CNY3 trillion (USD422.4 billion) for the ninth consecutive year last year, in spite of a modest decline.

Procurement spending by the government shrank about 0.5 percent to CNY3.38 trillion in 2024, according to data released by the finance ministry yesterday. The figure fell 3 percent in 2023, 3.9 percent in 2022, and 1.6 percent in 2021.

The multi-year decline may be related to the growing imbalance between fiscal revenue and expenditure and the government's efforts to reduce general spending.

Government procurement spending refers to outlays on goods, engineering projects, and services by state organs, public institutions, and social organizations -- using fiscal funds -- that are either listed in the legally mandated centralized procurement catalog or exceed the minimum procurement threshold. It has accounted for roughly 10 percent of China's fiscal expenditure over recent years.

At CNY1.38 trillion, engineering made up 41 percent of last year’s total, followed by services at 35.5 percent (CNY1.2 trillion) and goods at 23.5 percent (CNY794.5 billion or USD111.9 billion). The share of goods slightly increased from that in 2023, while that of the other two fell.

The ministry said procurement contracts awarded to small and medium-sized enterprises topped CNY2.42 trillion, about 72 percent of the total, with micro firms receiving CNY1.53 trillion of that.

Editor: Martin Kadiev