Core Viewpoint - The article highlights the implementation of more proactive fiscal policies in China, which are contributing to stable economic performance, as evidenced by the fiscal data for the first seven months of the year [2][6]. Fiscal Revenue and Expenditure - In the first seven months of this year, the total broad fiscal revenue was approximately 15.9 trillion yuan, remaining stable compared to the same period last year [2]. - Broad fiscal expenditure reached about 21.5 trillion yuan, showing a year-on-year increase of approximately 9.3% [2]. - The gap between fiscal expenditure and revenue was about 5.6 trillion yuan, which is a year-on-year increase of approximately 47% [2]. Tax Revenue Trends - Tax revenue saw a decline of 3.5% in the first quarter, but this was followed by four months of growth, narrowing the decline to 0.3% for the first seven months [3]. - The increase in tax revenue is attributed to stable growth in VAT and significant increases in securities transaction stamp duty due to active stock market trading [3]. Land Revenue and Local Government Financing - Land transfer revenue for the first seven months was approximately 1.7 trillion yuan, reflecting a year-on-year decline of 4.6% [5]. - To maintain expenditure levels, both central and local governments accelerated bond issuance, with net financing of government bonds reaching 8.9 trillion yuan, an increase of 4.88 trillion yuan year-on-year [5]. Social Spending and Policy Focus - Fiscal spending in the social welfare sector has been prioritized, with expenditures on social security, education, and healthcare growing faster than overall spending [6]. - Recent policies, such as pension increases and childcare subsidies, indicate a focus on investing in human capital [6]. Future Fiscal Policy Outlook - The Central Political Bureau meeting emphasized the need for continued macroeconomic policy support in the second half of the year, with a focus on implementing proactive fiscal policies and maintaining efficient fund usage [6]. - There is a belief that even without extraordinary fiscal measures, the real support for the economy in the second half could match that of the first half, with adjusted fiscal expenditure growth projected between 4.1% and 6.7% [6]. Preparedness for Economic Uncertainty - The Ministry of Finance has indicated that it retains sufficient policy space and tools to respond to potential uncertainties in the economy [7]. - The focus remains on stabilizing employment, businesses, markets, and expectations to support economic development and social stability [7].

Core Insights - The Ministry of Finance reported that from January to July, the national general public budget revenue reached 135,839 billion yuan, a year-on-year increase of 0.1%, marking the first positive growth of the year [1] - Public budget expenditure during the same period was 160,737 billion yuan, up 3.4% year-on-year, with strong support for key areas [1] Revenue Analysis - Tax revenue showed signs of recovery, with total tax revenue from January to July at 110,933 billion yuan, a year-on-year decline of 0.3%, but the decline narrowed compared to the first half of the year [2] - In July, tax revenue increased by 5.0% year-on-year, driven primarily by personal income tax and corporate income tax, which grew by 13.9% and 6.4% respectively [2] - The growth in personal income tax was attributed to low base effects, regulatory upgrades, and stock market performance, while the decline in value-added tax growth from 5.0% to 4.3% was linked to a slowdown in industrial value-added growth [2] Non-Tax Revenue Insights - Non-tax revenue for the first seven months was 24,906 billion yuan, a year-on-year increase of 2%, but the growth rate slowed down significantly in July, dropping from -3.7% to -12.9% [3] - The decline in non-tax revenue was attributed to a high base effect from the previous year and the effectiveness of enhanced management of confiscated income [3] Expenditure Focus - Public budget expenditure from January to July was 160,737 billion yuan, with significant increases in social security and employment (9.8%), education (5.7%), and health (5.3%) [4] - The acceleration of expenditure in key areas aligns with macroeconomic counter-cyclical policy adjustments, with social security and employment, health, and education expenditures progressing faster than the overall budget expenditure [4][5] July Expenditure Trends - In July, public budget expenditure grew by 3.0%, with notable increases in spending on education, culture, sports, and health, while technology spending saw a decline of 30.5% due to high base effects [5] - Local government special bonds and other financial instruments contributed to a significant increase in government fund budget expenditure, which grew by 31.7% [5]

Group 1 - The core viewpoint of the articles emphasizes the implementation of more proactive fiscal policies to support stable economic operations in China [1][3][5] - In the first seven months of this year, the total revenue from broad finance was approximately 15.9 trillion yuan, remaining stable compared to the same period last year, while expenditures reached about 21.5 trillion yuan, reflecting a year-on-year growth of approximately 9.3% [1][2] - The fiscal expenditure exceeded revenue by about 5.6 trillion yuan, marking a year-on-year increase of approximately 47%, indicating a significant expansion of fiscal policy [1][2] Group 2 - Tax revenue, often referred to as the "economic barometer," has shown improvement, with stable growth in VAT and a significant increase in securities transaction stamp duty due to active stock market transactions [2][3] - Local government land transfer income has also shown signs of recovery, with land transfer revenue for the first seven months amounting to approximately 1.7 trillion yuan, down 4.6% year-on-year, indicating a narrowing decline [2][3] - The net financing of government bonds reached 8.9 trillion yuan in the first seven months, supporting broad fiscal expenditures, particularly in the areas of social security, education, and healthcare [3][4] Group 3 - The central government has accelerated the issuance of special bonds and policy financial tools, which is expected to maintain a certain level of fiscal expenditure [3][4] - The fiscal policy is projected to continue supporting economic growth, with adjusted fiscal expenditure growth rates estimated between 4.1% and 6.7% for the second half of the year, aligning with economic growth targets of 4.7% to 4.8% [4][5] - The Ministry of Finance has indicated that it will utilize more proactive fiscal policies and reserve tools to address uncertainties and stabilize employment, businesses, and market expectations [5]

Core Viewpoint - The article highlights the implementation of more proactive fiscal policies in China, which are contributing to stable economic performance, as evidenced by the fiscal data for the first seven months of the year [1][4]. Fiscal Revenue and Expenditure - In the first seven months of this year, the total general fiscal revenue was approximately 15.9 trillion yuan, remaining stable compared to the same period last year [1]. - General fiscal expenditure reached about 21.5 trillion yuan, showing a year-on-year increase of approximately 9.3% [1]. - The fiscal expenditure exceeded revenue by about 5.6 trillion yuan, marking a year-on-year increase of approximately 47% [1]. Tax Revenue Trends - Tax revenue, often referred to as the "economic barometer," has shown improvement, with stable growth in VAT and significant increases in securities transaction stamp duty due to active stock market trading [2]. - The decline in tax revenue has narrowed, with a year-on-year decrease of only 0.3% for the first seven months, compared to a 3.5% decline in the first quarter [1][2]. Land Sales and Local Government Revenue - The revenue from land sales, a component of local government funds, was approximately 1.7 trillion yuan in the first seven months, reflecting a year-on-year decline of 4.6% [3]. - Major cities have increased the supply of quality land to stabilize the real estate market, contributing to a recovery in land sale revenues [2]. Government Debt and Financing - The net financing of government bonds reached 8.9 trillion yuan in the first seven months, an increase of 4.88 trillion yuan year-on-year [4]. - The government is accelerating bond issuance to maintain fiscal expenditure levels, particularly in social welfare sectors such as social security, education, and healthcare [4]. Future Fiscal Policy Outlook - The central government plans to continue implementing proactive fiscal policies and moderate monetary policies to support economic growth and social stability [6]. - Despite concerns about potential reductions in fiscal spending in the second half of the year, estimates suggest that the adjusted fiscal expenditure growth rate could remain between 4.1% and 6.7% [5].

Group 1 - The article highlights the acceleration of local government special bonds and special treasury bonds issuance, indicating that broad fiscal spending is likely to maintain a certain level of intensity [1][8] - The Ministry of Finance reports that in the first seven months of this year, broad fiscal revenue totaled approximately 15.9 trillion yuan, remaining stable compared to the same period last year, while broad fiscal expenditure reached about 21.5 trillion yuan, reflecting a year-on-year growth of approximately 9.3% [2][3] - The fiscal expenditure significantly exceeded revenue by about 5.6 trillion yuan, marking a year-on-year increase of approximately 47%, indicating a more proactive fiscal policy [2][3] Group 2 - Tax revenue, often seen as an economic barometer, showed a decline of 3.5% in the first quarter but improved in the following months, resulting in a decrease of only 0.3% in the first seven months [3][5] - The land transfer income for local governments decreased by 4.6% year-on-year, amounting to approximately 1.7 trillion yuan in the first seven months, but the decline is narrowing [5][6] - The net financing of government bonds reached 8.9 trillion yuan in the first seven months, an increase of 4.88 trillion yuan year-on-year, supporting broad fiscal expenditure [7] Group 3 - The central and local governments are accelerating bond issuance to maintain spending expansion, focusing on major projects and risk prevention [6][9] - The recent policies aimed at enhancing social welfare, such as pension increases and childcare subsidies, indicate a shift towards investing more in human capital [7][9] - The central political bureau meeting emphasized the need for sustained macroeconomic policy efforts, including the implementation of more proactive fiscal policies and moderately loose monetary policies [7][9]

Core Viewpoint - The fiscal revenue in China has turned positive for the first time in 2023, with a slight year-on-year increase of 0.1% in the first seven months, while expenditure grew by 3.4% [2] Revenue Summary - From January to July, the total public budget revenue reached 135,839 billion yuan, marking a year-on-year increase of 0.1%, the first positive growth this year [2] - Tax revenue, which is a key component of public budget revenue, totaled 110,933 billion yuan, showing a year-on-year decline of 0.3%, but the decline is narrowing [2] - In July alone, tax revenue was 18,018 billion yuan, reflecting a year-on-year growth of 5% [2] - Major tax categories showed varied performance: - Value-added tax increased by 3% - Consumption tax rose by 2.1% - Corporate income tax decreased by 0.4% - Personal income tax surged by 8.8% [3][4] Expenditure Summary - Total public budget expenditure from January to July was 160,737 billion yuan, with a year-on-year increase of 3.4% [6] - Expenditure on social security and employment grew by 9.8%, while education and health expenditures increased by 5.7% and 5.3%, respectively [6] - The expenditure growth rate is slower than the revenue growth, indicating a cautious fiscal approach [6] Future Outlook - Analysts suggest that fiscal policy will continue to play a crucial role in stabilizing domestic demand and confidence, with expectations of increased fiscal measures in the latter half of the year [7] - The potential for further fiscal spending is anticipated, especially through special government bonds and adjustments to the deficit [7]

Revenue Insights - From January to July 2025, the national general public budget revenue reached CNY 135,839 billion, with a year-on-year growth of 0.1%[2] - The national general public budget expenditure was CNY 160,737 billion, showing a year-on-year increase of 3.4%[2] - Individual income tax revenue growth expanded to 8.8%, significantly higher than the overall tax revenue growth rate[2] Fund Budget Analysis - Government fund budget revenue decreased by 0.7% year-on-year, while expenditure surged by 31.7%[4] - The increase in fund expenditure is primarily due to the accelerated implementation of special national bonds and local special bonds[4] - The overall fiscal expenditure (public finance + government fund expenditure) grew by 9.3% year-on-year, reflecting a 0.4 percentage point increase from the previous month[4] Expenditure Trends - Public finance expenditure growth remained stable, with a focus on social welfare, which saw a 6.8% increase, particularly in social security and employment sectors, which grew by 9.8%[3] - Infrastructure spending continued to show negative growth, with specific sectors like urban community and transportation also experiencing declines[3] - Debt interest payments increased by 6.4%, indicating a rising trend in this area[3] Fiscal Performance Metrics - By the end of July 2025, the completion rate of the national general public budget revenue was 61.8%, below the five-year average of 63.5%[2] - The completion rate for public finance expenditure was 54.1%, also lower than the five-year average of 54.7%[3]

Core Viewpoint - The article highlights the recovery in both revenue and expenditure growth in July 2025, primarily driven by improved tax revenue and proactive government spending focused on public welfare [1][2][3]. Revenue Summary - In the first seven months of 2025, national general public budget revenue increased by 0.1% year-on-year, with July showing a growth rate of 2.6%, marking the first positive cumulative revenue growth of the year [1]. - Tax revenue showed a significant rebound, while non-tax revenue continued to decline, indicating a shift towards improved tax collection [1]. - Local revenue growth outpaced that of the central government, alleviating some fiscal pressure at the local level [1]. - Specific tax categories such as domestic consumption tax, corporate income tax, and personal income tax showed marginal improvements, with a notable increase in securities transaction stamp duty reflecting a more active stock market [1]. Expenditure Summary - National general public budget expenditure rose by 3.4% year-on-year in the first seven months of 2025, with July showing a recovery in growth [2]. - Both central and local fiscal expenditures were proactive, with central expenditure maintaining high growth rates and local expenditure turning positive, likely due to eased constraints from revenue [2]. - Key areas of expenditure included health care and social security, while infrastructure spending showed a slowdown [2]. - Government fund revenue growth saw a marginal decline, with a year-on-year decrease of 0.7% in the first seven months, influenced by the ongoing adjustments in the real estate market [2]. Government Fund Expenditure Summary - Government fund budget expenditure increased by 31.7% year-on-year in the first seven months of 2025, with central and local levels growing by 4.5 times and 18.1%, respectively [3]. - The acceleration in bond issuance and utilization was a significant factor driving this growth, with 2.89 trillion yuan allocated to government fund budget expenditures [3]. - Despite a slight decline in the growth rate of government fund budget expenditure in July, it remained at a high level [3]. Overall Fiscal Outlook - The article concludes that there are positive signs in fiscal revenue and expenditure, with improved tax collection and accelerated local revenue growth helping to ease fiscal pressures [3]. - Central government efforts to maintain economic stability through direct funding for major projects and transfer payments are emphasized, alongside continued support for public welfare [3]. - The ongoing challenges in the economy, particularly in the real estate sector, require close monitoring, with expectations for continued proactive macroeconomic policies in the second half of the year [3].

Core Insights - The Ministry of Finance reported that the national general public budget revenue showed the highest growth in July, with the cumulative growth for January to July turning positive for the first time this year [1][5]. Revenue Performance - In July, the national general public budget revenue reached 202.73 billion yuan, a year-on-year increase of 2.6%, with central and local revenues growing by 2.2% and 3.1% respectively, marking the highest monthly growth of the year [3]. - For the period of January to July, the total national general public budget revenue was 1,358.39 billion yuan, reflecting a growth of 0.1%, which is an increase of 0.4 percentage points compared to the first half of the year [5]. Tax Revenue Trends - Tax revenue showed a significant narrowing of decline, with July tax revenue at 180.18 billion yuan, a year-on-year increase of 5%, continuing to recover since April [8]. - From January to July, total tax revenue was 1,109.33 billion yuan, down by 0.3%, but this decline was 0.9 percentage points less than in the first half of the year. Domestic value-added tax and domestic consumption tax grew by 3% and 2.1% respectively, with increases of 0.2 and 0.4 percentage points compared to the first half [8]. Sector Performance - The equipment manufacturing and modern service industries showed strong tax revenue performance, with tax revenue from railway, shipbuilding, and aerospace equipment growing by 33%, and computer and communication equipment by 10.1% [10]. - The scientific research and technical service industry saw a tax revenue increase of 12.7%, while the cultural, sports, and entertainment sectors grew by 4.1% [10]. Expenditure Overview - National general public budget expenditure maintained growth, with total expenditure from January to July reaching 1,607.37 billion yuan, a year-on-year increase of 3.4% [11]. - Key areas of expenditure included social security and employment, which grew by 9.8%, education by 5.7%, and health by 5.3%, while housing security expenditure saw a slight increase of 0.2% [13].

Revenue and Expenditure Trends - In the first seven months of 2025, the cumulative year-on-year growth rate of general public budget revenue was +0.1%, up from -0.3% in the previous period[1] - General public budget expenditure maintained a year-on-year growth rate of +3.4%, unchanged from the previous period[1] - Government fund budget revenue showed a cumulative year-on-year decline of -0.7%, improving from -2.4% previously[1] - Government fund budget expenditure increased significantly by +31.7%, compared to +30.0% in the previous period[1] Tax Revenue Insights - In July, tax revenue increased by +5.0% year-on-year, marking an improvement for two consecutive months[3] - The four major tax categories showed varied performance, with domestic consumption tax growing by +5.38% and corporate income tax rising by +6.36%[4] - Personal income tax saw a notable increase of +13.92%, the highest among major tax categories, driven by low base effects and stock market gains[5] Government Fund Performance - Government fund budget revenue growth slowed to +8.9% in July, down from +20.8% the previous month, with land use rights revenue increasing by +7.2%[22] - Government fund budget expenditure growth also decreased to +42.4% from +79.2% in the previous month, with land-related expenditures declining by -4.1%[22] Infrastructure Investment and Economic Outlook - Infrastructure-related expenditure showed a recovery with a year-on-year growth rate of -3.81%, improving by 4.99 percentage points from the previous month[14] - The cumulative completion rate for general public budget revenue in the first seven months was 58.2%, lower than the average of the past five years[14] - The government is expected to have room for further fiscal policy adjustments to stabilize the domestic economy in the second half of the year[34]