China's Jan-July 2026 Public Budget Revenue Up 5.8%, Spending Up 1.3%

From January to July 2026, national general public budget revenue reached RMB14.37 trillion, up 5.8% year on year, with the growth rate 1.1 percentage points higher than in the first half. Tax revenue totaled RMB11.84 trillion, up 6.7%, 1.4 percentage points higher than in the first half. Fiscal revenue and spending maintained steady and relatively fast growth, with key areas of expenditure ensured.

By tax category, domestic value-added tax rose 6.1%, driven by sustained growth in industry and services and higher producer prices. VAT and consumption tax on imported goods increased 12.3%, reflecting rapid growth in foreign trade imports. Corporate income tax grew 7.2% on faster corporate profit growth. Securities transaction stamp duty surged 99.2%, linked to higher stock market turnover. Export VAT and consumption tax rebates totaled RMB1.48 trillion, an increase of RMB73.5 billion year on year, supporting export growth.

During the same period, national general public budget expenditure totaled RMB16.29 trillion, up 1.3% year on year. Health and hygiene spending rose 9.8%, mainly due to child-rearing subsidies and increased subsidies to the basic medical insurance fund. Social security and employment spending increased 7%. Science and technology spending rose 1.5%. Housing security spending increased 4%.

Wang Xinxiang, director of the Ministry of Finance's Budget Department, said at a State Council Information Office press conference that the 2026 national general public budget allocates RMB12.4 trillion for education, social security, health, housing and other areas, up 5.4% from 2025. More than 25 million infants and their families received 2026 child-rearing subsidies, and about 24 million children in kindergartens benefited from a policy waiving childcare and education fees for the year before primary school.