First-Half General Public Budget Revenue Hits RMB 12.1 Trillion, Up 4.7%; Securities Transaction Stamp Duty

In the first half of the year, China's general public budget revenue totaled RMB 12.1 trillion, a year-on-year increase of 4.7%, with the cumulative growth rate rising month by month. This pace corresponds to the 4.7% growth in gross domestic product for the same period. The scale and growth rate of fiscal revenue reflect the economy's stable expansion and improving quality and efficiency.

The general public budget consists of tax and non-tax revenue, with tax revenue as the main component. Value-added tax, the largest tax category, grew 6% in the first half, driven by sustained growth in industry and services as well as a rise in the producer price index. Corporate income tax increased 3.9%, primarily due to higher corporate profits. In the first five months, profits of industrial enterprises above a designated size rose 18.8% year on year, maintaining double-digit growth since the start of the year. Securities transaction stamp duty nearly doubled in the first half, reflecting continued buoyancy in the capital market. Local general public budget revenue from their own sources increased 2.7% year on year. By region, eastern, central, western, and northeastern areas all recorded revenue growth. Among the 31 provinces, 28 saw revenue increases, indicating steady economic performance across regions.

Regarding the local fiscal self-sufficiency rate, China operates a tax-sharing fiscal management system. Local general public budget revenue includes not only locally collected revenue but also tax rebates and transfer payments from the central government. Local expenditures are also diversified. The central government has continuously increased transfer payments to local governments, exceeding RMB 10 trillion for four consecutive years, playing a role in narrowing regional fiscal disparities, ensuring basic public services, and promoting coordinated regional development. At the same time, efforts are needed to enhance local autonomous fiscal capacity, including expanding local tax sources, appropriately broadening local tax management authority, and advancing reforms on local surtaxes. Economic performance in the first half drove sustained fiscal revenue growth. The combined effect of proactive fiscal policy and other macro policies injected momentum into the economy. Going forward, precise and effective macro policy implementation will help maintain stable economic operation and improve people's livelihoods.