Core Viewpoint - The article emphasizes the need for short-term measures to enhance tax collection and activate asset resources to compensate for revenue shortfalls, while advocating for long-term reforms to ensure sustainable fiscal growth [1][12]. Summary by Sections Current Fiscal Challenges - Local fiscal revenues are under pressure due to sluggish tax revenue growth and a significant decline in land transfer income, with national tax revenue expected to decrease by 3.4% in 2024 and show only a slight increase of 0.02% in the first eight months of 2025 [3][4]. - In Anhui Province, tax revenue growth has also been strained, attributed to macroeconomic slowdowns and declining industrial prices, which have reduced corporate profit margins and tax elasticity [4][9]. Revenue Composition and Trends - In 2023, Anhui's general public budget revenue reached 285.6 billion yuan, a 2.7% increase year-on-year [5]. - Non-tax revenue accounted for 35.6% of Anhui's general public budget revenue in 2024, up 5.1 percentage points from 2019, indicating a reliance on non-tax sources to offset tax revenue shortfalls [6]. - Land transfer income, which previously contributed over 40% to the combined budget revenue, has seen a nearly 50% decline from its peak in 2021, creating a significant revenue gap [9][10]. Debt and Financing Issues - The decline in land transfer income has reduced local governments' borrowing capacity and weakened their ability to finance through land sales, leading to a decrease in the allocation of new debt limits [10]. - The structure of local government debt is shifting, with general debt decreasing and challenges in financing public projects becoming more pronounced [10][11]. Recommendations for Improvement - Short-term strategies include enhancing tax collection through strict enforcement and optimizing asset resource utilization to fill revenue gaps [12][13]. - Long-term reforms should focus on improving the fiscal and tax system, developing new quality revenue sources, and exploring customized land resource supply to meet housing demands [12][14]. - The article suggests transitioning local government financing from reliance on government support to generating self-sustaining revenue through emerging industries and tax sources [14].

Core Viewpoint - Despite a sluggish real estate market, property tax revenue has seen a counter-trend growth, with a 12% increase in the first half of 2025 compared to the previous year, significantly outpacing the overall tax revenue decline of 1.2% [3][7]. Group 1: Property Tax Revenue Growth - In the first half of 2025, national property tax revenue reached 261.8 billion yuan, marking a 12% year-on-year increase, which is higher than the declines in related taxes such as deed tax (-14.8%) and land value increment tax (-17.6%) [3][7]. - Local finance departments attribute this growth to enhanced tax collection efforts, with specific regions like Fujian and Xinjiang reporting increases of 13.7% and 17.9% respectively due to intensified tax enforcement [3][6]. Group 2: Tax Management Improvements - Some regions have utilized big data and digital management techniques to improve property tax collection, addressing issues like inaccurate tax source information [5][6]. - The Zhengzhou Airport Economic Comprehensive Experimental Zone has reported a 36.42% increase in property-related tax revenue, with significant contributions from online data comparisons and risk audits [6]. Group 3: Local Fiscal Challenges - Despite the growth in property tax revenue, local governments face ongoing fiscal challenges due to declining revenues from land value increment tax and deed tax, which have seen a combined drop of approximately 30% since their peak in 2021 [7][8]. - In the first half of 2025, the combined revenue from deed tax and land value increment tax was 490.3 billion yuan, down about 16% from the same period in 2024 [7]. Group 4: Overall Local Fiscal Situation - Nationally, local government general public budget revenue grew by 1.6% to 669.77 billion yuan in the first half of 2025, while expenditures increased by 2.6% to 1.21357 trillion yuan [8]. - Local government fund budget revenue decreased by 3.2%, indicating ongoing fiscal pressures despite some areas of revenue growth [8].

Core Insights - In the first half of 2025, property tax revenue surpassed deed tax and land value increment tax, becoming the largest source of revenue among land and real estate-related taxes [1][2]. Revenue Performance - National property tax revenue reached 261.8 billion yuan in the first half of 2025, marking a 12% year-on-year increase, significantly higher than the overall national tax revenue growth rate of -1.2% and the declines in deed tax (-14.8%) and land value increment tax (-17.6%) [2]. - Property tax revenue growth is attributed to enhanced tax collection efforts by local fiscal departments, with notable increases reported in regions such as Fujian (13.7% growth) and Xinjiang (17.9% growth) [2][3]. Tax Management Improvements - Local governments have utilized big data and improved tax management practices to enhance property tax collection, addressing issues such as low-quality data and tax assessment inaccuracies [4]. - For instance, the Zhengzhou Airport Economic Comprehensive Experimental Zone reported a 36.42% increase in property and land taxes collected from January to July 2025, aided by online data comparisons and risk audits [4]. Fiscal Context - Despite the growth in property tax revenue, the overall fiscal environment remains challenging, with significant declines in deed tax and land value increment tax exacerbating local fiscal pressures [4][5]. - In 2024, the combined revenue from deed tax and land value increment tax was approximately 1,001.6 billion yuan, a decline of about 30% from the peak in 2021 [5]. - Local government budget data indicates a slight increase in general public budget revenue (1.6%) and a more substantial increase in expenditures (2.6%) for the first half of 2025, highlighting ongoing fiscal challenges [6].

Core Viewpoint - The article highlights the accelerated issuance of local government bonds in China during the first half of the year, with a total issuance of approximately 5.5 trillion yuan, reflecting a year-on-year growth of about 57% [1][2]. Group 1: Bond Issuance Overview - In the first half of the year, local government bonds were issued at a rapid pace, with new bonds accounting for approximately 2.6 trillion yuan, a year-on-year increase of 43%, while refinancing bonds reached about 2.9 trillion yuan, growing by approximately 73% [1][2]. - More than half of the funds from local government bonds were used for refinancing old debts, which alleviated current fiscal pressures and allowed local governments to focus more on development and public welfare [2]. Group 2: Fund Allocation and Project Focus - The newly issued special bonds, totaling around 2.2 trillion yuan, were primarily directed towards infrastructure and public welfare projects, with significant allocations to municipal and industrial park infrastructure (28%), transportation projects (19%), and land reserve projects (11%) [3]. - The government has allowed special bonds to be used for land reserve projects to stabilize the real estate market, leading to increased funding in this area [3]. Group 3: Debt Management and Financial Health - The average issuance term of local government bonds has extended to 16.4 years, with an average interest rate of 1.95%, lower than the previous year's rate of 2.29%, which helps reduce financing costs [4]. - As of May 2025, the total local government debt stood at 51.25 trillion yuan, remaining within the limit of 57.99 trillion yuan, indicating that debt risks are generally manageable [4]. - The Ministry of Finance plans to expedite the issuance of long-term special bonds to support economic stability and growth, with expectations for increased issuance in the third quarter [4].

Group 1 - In the first half of the year, local government bond issuance accelerated, with a total of approximately 5.5 trillion yuan issued, representing a year-on-year increase of about 57% [1][2] - New special bonds issued amounted to approximately 2.2 trillion yuan, a year-on-year increase of 45%, while refinancing bonds reached about 2.9 trillion yuan, up approximately 73% [1][2] - More than half of the funds from local government bonds were used for refinancing old debts, which alleviated current fiscal pressures and allowed local governments to focus more on development and livelihood projects [2][3] Group 2 - The issuance of refinancing bonds was driven by two main factors: the replacement of hidden debts and the reliance on refinancing bonds to repay about 90% of maturing local government bond principal [2][3] - The average issuance term of local government bonds has continued to extend, with an average interest rate of 1.95%, significantly lower than the previous year's level of 2.29%, which helps reduce financing costs [9][10] - The Ministry of Finance has indicated plans to expedite the issuance of long-term special bonds and local government special bonds to support economic stability and growth [10]