world growth

world growth

Wednesday, August 6, 2008

China first half fiscal revenue up 33 pct on year earlier

With this much budget surplus, Chinese government should increase the assistance to the poors in the society, who are suffering due to the high inflation.

China H1 fiscal revenue up 33 pct on year earlier

BEIJING, Aug 7 (Reuters) - China's fiscal revenue in the first half of this year grew 33.3 percent from a year earlier to 3.48 trillion yuan ($508.1 billion), the China Securities Journal reported on Thursday.
That is much faster than a projected increase of 14 percent for all of 2008 set out in the the government's budget at the start of the year. Fiscal revenue in 2007 rose 32.4 percent to 5.13 trillion yuan.
Citing figures from the Finance Ministry, the newspaper said China had a surplus of 1.19 trillion in the first six months, with annual fiscal expenditure up only 27.7 percent.

The Chinese-language newspaper cited Pan Xiangdong, an analyst at Everbright Securities, as saying that fiscal policies would play a bigger role in driving economic growth in the second half. He said China should cut individual income tax and consumption tax to boost domestic demand.
China in late July raised the rebates for some textile and garment exporters to 13 percent from 11 percent, as part of efforts to support labour-intensive industries and boost export growth amid a slowing global economy.
However, analysts cited by the newspaper also warned that China would find it different in the second half to expand its budget surplus.
Revenue growth would slow down due to weaker imports and rises in export tax rebates, while rebuilding after the devastating Sichuan earthquake in May and various reforms could increase expenditures, they said. ($1=6.848 Yuan) (Reporting by Langi Chiang; Editing by Kim Coghill)

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