(Yicai) Jan. 30 -- Shanxi province in northern China and Jiangxi province in the east of the country are the only two provincial-level regions that predict fiscal revenue to expand this year despite a sluggish economy and large tax and fee rebates.

Shanxi province anticipates fiscal revenue to expand 3 percent in 2024, much more than last year’s 0.3 percent, the province said in its government work report. Of the 31 provincial-level regions in the country, with the exception of Qinghai province in the west, 30 have submitted their forecasts for fiscal revenue growth this year.

Guangdong, the province with the biggest economy, said it expects its tax haul to climb 3 percent this year, much less than last year’s 4.3 percent. While Jiangsu province in the east is anticipating fiscal revenue to advance 4 percent, a big slowdown from last year’s 7.3 percent.

Almost all local governments have lowered their fiscal revenue expectations, Luo Zhiheng, chief economist at Yuekai Securities, told Yicai. This is largely as a result of slowing economic growth, as well as less income as a result of tax and fee cuts.

Although Guangdong’s economy continues to recover, the rising complexity of the external environment, overcapacity in some sectors, increased operating pressures plus the implementation of tax breaks and fee reductions are all affecting its coffers, the southern province said in its budget report.

New industries are replacing outdated ones, central Hunan province said in its budget report. As a result, many industries, including the real estate sector, are in a state of recuperation and so their tax contributions are limited. But at the same time the fostering of emerging sectors is speeding up.

Many tax breaks and fee cuts have been rolled out in recent years. Last year, the amount of tax rebates and deferred payments came to more than CNY2.2 trillion (USD307.5 billion). And this year, the central government is continuing to implement these cuts as well as focus on supporting technological and innovative industries and the manufacturing sector.

Editor: Kim Taylor