Government Revenue and Expenditure

Gloria Van Rees

Chinas revenue and expenditures show government balanced increased as of July 2018. The aggregated YTD government balance is -376 billion yuan. Central government revenue increased by 60 billion yuan, while central government expenditure decreased from 343 billion yuan to 254 billion. Local government revenue decreased by 82 billion yuan. Local expenditure decreased as well by 1.4 trillion yuan from a June high of 2.5 trillion yuan to 1.1 trillion in July. However, local expenditure is still outpacing revenue by 255 billion yuan.

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Some writer in Hong Kong speculates that China is trying to fight the trade war (instead of concession) by raising taxes in all directions. The new individual income tax rule is a good example (encompassing "foreign" citizens like HKers by reducing the definition of taxable residency from 5 years to 6 months). There is also a recent exercise to claw back taxes from artistes in the movie industry. Unfortunately, the article is in Chinese. However, perhaps it isn't an obstacle for you: