The slow growth on China’s economy has affected government income and spending in 2015.
China’s slowing economy has taken a toll on government income. The Ministry of Finance says the fiscal revenue for 2015 is 15.22 trillion yuan, up 8.4 percent from the previous year.
The slow income growth is also attributed to the slumping global commodity prices, disappointing industrial activities, and weak performances by companies.
Experts believe the world’s second largest economy warrants a huge volume in financial income but its per capita number is weak.
China’s economy grew by 6.9 percent in 2015, its lowest since 1990, a transition that means tax cuts are necessary, which partly affected government income.
To cushion the economic slowdown, a proactive fiscal policy was put into place to ensure spending.
Fiscal expenditure reached more than 17-and-a-half trillion yuan in 2015, up almost 16%, a much larger increase than that of the fiscal revenue.
According to Finance Minister Lou Jiwei, the proactive fiscal policy is here to stay. This year, a widening deficit, more tax cuts, and shrinking funds on public vehicles, receptions, and travel will continue to reflect the new economic reality. (Source: CNTV.cn)