China’s fiscal revenue growth gathers pace in Nov

BEIJING (Reuters) – China’s fiscal revenue rose by 4.3% in November year-on-year, quickening from a 2.6% gain in October, according to Reuters calculations based on official data on Friday.

In the first 11 months, fiscal revenue logged a 7.9% increase from a year earlier, compared with 8.1% growth in the January-October period, finance ministry data showed.

Fiscal expenditures grew 4.9% in the first 11 months, compared with a 4.6% gain in the first 10 months, the data showed.

For November alone, fiscal spending jumped 8.6%, versus a 11.9% rise in October, according to Reuters calculations.

The economy is struggling with rising deflationary pressures, mounting local government debt and an ailing property market amid tepid demand both at home and abroad, raising calls for more policy support.

The cities of Beijing and Shanghai further relaxed home purchase restrictions on Dec. 14, adding to a series of measures to shore up the sluggish housing market over recent months.

At an agenda-setting meeting earlier in December, top leaders pledged to step up policy adjustments to prop up an economic recovery in 2024.

“Fiscal policy will do the heavy lifting of supporting growth next year,” Goldman Sachs said in a note after the meeting.

China plans to implement structural tax and fee cuts, and plans a new round of fiscal and tax reforms while optimising the structure of fiscal spending, according to the meeting takeaways.

(Reporting by Qiaoyi Li and Ryan Woo)