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Wednesday, August 12, 2015, 17:19

China's fiscal expenditure jumps 24.1% in July

By Xinhua

BEIJING - China's fiscal expenditure rose 24.1 percent year on year to 1.27 trillion yuan (US$201 billion) in July, the Ministry of Finance announced on Wednesday, signaling governmental efforts to stimulate economic activity.

Total fiscal spending in the first seven months amounted to 9 trillion yuan, up 13.4 percent year on year, with spending on social security and employment up 21.4 percent to 1.17 trillion yuan.

China's fiscal revenue rose 12.5 percent year on year to 1.42 trillion yuan in July, according to the ministry. Combined fiscal revenue in the first seven months hit 9.38 trillion yuan, a year-on-year increase of 7.5 percent. The revenue growth was 3.1 percentage points lower compared to the rise seen in the same period last year based on the same caliber.

The slower growth was due to factors including carryover effects, slowing industrial activity and the government's efforts to cut taxes and fees to relieve the burden on businesses, experts said.

The ministry said it will strengthen budget management and eliminate tax loopholes to increase revenues.

Data released by the National Bureau of Statistics earlier in the day underlined sluggish growth in the world's second-largest economy.

In July, China's value-added industrial output expanded 6 percent year on year, down from 6.8 percent for June while retail sales expanded 10.5 percent, lower than June's 10.6-percent growth. Fixed-asset investment grew 11.2 percent year on year in the first 7 months of 2015, lower than 11.4 percent in the first half.

Premier Li Keqiang, speaking at the opening of the annual parliamentary session in March, stressed that a proactive fiscal policy and prudent monetary policy would continue in 2015.

China plans to raise its budget deficit to 2.3 percent of its GDP for 2015, up from last year's target of 2.1 percent.

China's economy posted 7-percent growth year on year in the second quarter of 2015, unchanged from the first quarter, the lowest quarterly growth rate since 2009.

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