(Yicai Global) Dec. 18 -- Growth in China's fiscal revenue slowed 2.7 percentage points during the first 11 months of this year after a string of tax cuts aimed at boosting the real economy.

Fiscal income rose 3.8 percent to CNY17.9 trillion (USD), the Ministry of Finance said yesterday. Some CNY8.6 trillion came from the central government, up 4.8 percent, while revenue at a local level climbed 3 percent to CNY9.3 trillion.

Income from tax was up just 0.5 percent at CNY15 trillion.

China's largest source of tax income, that of value-added tax, grew just 2.3 percent annually to CNY5.8 trillion after the government reduces rates. The rise in revenue was down from 9.4 percent a year earlier.

Corporate tax contributed CNY3.7 trillion, rising 5.7 percent, or 3.6 points slower, after companies got larger pre-tax allowances for research and development and the country offered tax relief to small- and micro-enterprises, the ministry said. Revenue from personal income tax slipped 26.8 percent to CNY950.2 billion after the government offered deductions on spending for elderly care, childcare and education.

Expenditure rose 7.7 percent to CNY20.6 trillion, well above the 6.5 percent forecast for the whole year. The largest chunk of money went on science and technology as spending in the sector rose 8.9 percent, while healthcare came in second after a 9.1 percent gain. Outgoings on energy saving and environmental protection jumped 14.3 percent.

Editor: James Boynton