Local Fiscal Spending Up 0.6% in H1 2026; Guangdong Leads, Shanghai Fastest Growth
In the first half of 2026, local general public budget expenditures across 31 provinces totaled RMB 12.2 trillion, up 0.6% year on year. Guangdong recorded the largest spending at RMB 917.1 billion, up 1%, while Shanghai posted the fastest growth at 10.7%. Per capita spending remained highest in Tibet, Beijing, and Shanghai. Nineteen provinces increased spending, with most below 3%, while 12 declined, led by Shanxi's 5.2% drop. Livelihood spending was safeguarded, with Guangdong's share at 74% and Jilin exceeding 80%.
In the first half of 2026, all 31 provincial-level regions disclosed their local general public budget expenditure data. Guangdong recorded the largest fiscal spending, at approximately RMB 917.1 billion, up 1% year on year. Sichuan and Jiangsu ranked second and third, with spending of about RMB 743.3 billion and a slightly lower amount, respectively. Provinces with spending exceeding RMB 600 billion included Shandong and Zhejiang; those above RMB 500 billion included Henan, Hebei, and Shanghai; those above RMB 400 billion included Hubei, Hunan, Beijing, and Anhui; those above RMB 300 billion included Shaanxi, Jiangxi, Yunnan, Guangxi, Liaoning, Xinjiang, Guizhou, and Fujian; those above RMB 200 billion included Inner Mongolia, Heilongjiang, Shanxi, Chongqing, Gansu, and Jilin; and those above RMB 100 billion included Tibet, Tianjin, and Hainan. Qinghai and Ningxia each exceeded RMB 90 billion.
Taking the resident population into account, per capita fiscal spending in Guangdong, Sichuan, and Jiangsu was approximately RMB 7,132, RMB 8,936, and RMB 8,512, respectively, all lower than Tibet's RMB 42,808, Beijing's RMB 21,381, Shanghai's RMB 21,336, and Qinghai's RMB 16,807. In terms of spending growth, 19 provinces recorded increases, with Shanghai posting the fastest growth at 10.7%, while most provinces grew by less than 3%. Twelve provinces saw spending decline, with Shanxi recording the largest drop of -5.2%.
Livelihood spending was safeguarded. In Guangdong, livelihood spending accounted for 74% of local general public budget expenditure, with health, social security and employment, and housing security spending rising 6.5%, 5.3%, and 4.7%, respectively. In Jilin, livelihood spending accounted for over 80% of the total, with social security and employment spending up 13% and health spending up 18.1%.
At the end of July, the Political Bureau of the CPC Central Committee held a meeting requiring that macro policies be strengthened for greater effectiveness, that the pace of fiscal spending and bond fund utilization be accelerated, that the construction of major national strategies and security capabilities and the implementation of large-scale equipment renewals and consumer goods trade-ins be advanced, and that the bottom line for basic livelihood, wages, and government operations at the grassroots level be firmly secured.