Core Viewpoint - Local government fiscal revenue is expected to continue growing in the second half of the year, with potential fluctuations in the third quarter, necessitating close monitoring and timely fiscal policy adjustments [2][3]. Revenue Summary - In the first half of the year, local general public budget revenue increased by 1.6% year-on-year, driven primarily by non-tax revenue growth, indicating a weak recovery [2][3]. - Among 31 provinces, 27 reported revenue growth, with Jilin showing the highest increase at 16.4%, while four provinces, including Shaanxi and Shanxi, experienced declines [3][4]. - The average growth rate of local general public budget expenditure was 2.6%, surpassing revenue growth, as 24 out of 28 provinces maintained expenditure increases to support livelihoods and stabilize the economy [1][3]. Expenditure Summary - Despite overall revenue growth, many provinces face significant fiscal pressure due to rising rigid expenditures, such as debt repayments and social welfare [9][11]. - Local governments are implementing measures to balance budgets, including increasing revenue through legal tax collection and optimizing asset management [10][11]. - The focus remains on ensuring the "three guarantees" (basic livelihood, wages, and operational stability) are met, with many regions prioritizing these expenditures [10][11]. Regional Disparities - There are notable disparities in fiscal performance at the municipal and county levels, with some areas experiencing robust growth while others struggle with fiscal difficulties [6][7]. - For instance, in Fujian, 75.6% of counties reported positive revenue growth, while some regions continue to face challenges due to low real estate tax revenues and land transfer income [6][8]. Future Outlook - The fiscal landscape remains complex, with ongoing pressures expected in the second half of the year, particularly in revenue generation [9][10]. - Local governments are urged to adopt stringent measures to control non-essential expenditures while ensuring essential services are funded adequately [10][11].