Fiscal revenue growth slows to 3.1%

By Maggie Zhang  |   2008-10-20  |     ONLINE EDITION

CHINA’S fiscal revenue growth slowed to 3.1 percent in September on falling corporate profitability and sluggish property and stock markets, the Ministry of Finance said today.

Revenue totaled 421.7 billion yuan (US$61.7 billion) in September, the ministry said in a statement on its Website yesterday. Growth dropped from a pace of 10.1 percent in August and 16.5 percent in July, the ministry said.

Government expenditure increased 11.6 percent last month to 494.9 billion yuan, the ministry said.

Fiscal revenue decreased sharply in the third quarter due to correcting profitability, sluggish capital and property markets and authorities' expenditures to boost the economy, the ministry said.

For the first nine months, fiscal revenue increased 25.8 percent to 4.89 trillion yuan and expenditures were up 25.5 percent to 3.64 trillion yuan, leaving a surplus of 1.25 trillion yuan.

"In an attempt to maintain growth momentum and support employment, the government will most likely book a budget deficit this year and also next year," said Sherman Chan, a Moody's Economy.com economist.