Group 1 - In the third quarter of this year, China's fiscal revenue growth significantly increased compared to the previous quarter, with multiple key areas of fiscal expenditure reaching the highest level in nearly three years [1] - For the first three quarters, the national general public budget revenue was 163,876 billion yuan, a year-on-year increase of 0.5%, with a notable growth of 2.5% in the third quarter [1] - Tax revenue, as the main component of fiscal income, increased by 0.7% year-on-year in the first three quarters, with domestic value-added tax growing by 3.6% and corporate income tax increasing by 0.8% [1] Group 2 - The revenue from securities transaction stamp duty reached 1,448 billion yuan in the first three quarters, reflecting a year-on-year increase of approximately 100%, indicating a recovery in market confidence [2] - National general public budget expenditure for the first three quarters was 20.81 trillion yuan, a year-on-year increase of 3.1%, while government fund budget expenditure saw a significant growth of 23.9% [2] - The Ministry of Finance announced two measures to support economic recovery, including an increase of 1,000 billion yuan in the allocation of local government debt limits and the early issuance of new local government debt limits for 2026 [2] Group 3 - In 2024, the central government arranged a local government debt limit of 4,000 billion yuan, with an increase in both the scale and scope of support compared to the previous year [3] - The allocation of the debt limit aims to support local governments in resolving existing investment project debts and addressing overdue payments to enterprises, thereby reinforcing economic recovery [3] - Early issuance of the new debt limits is expected to ensure the progress of key project constructions and stabilize the local government bond market [3]

Core Viewpoint - The fiscal data for August 2025 indicates a slowdown in both revenue and expenditure growth, reflecting a need to boost domestic demand. Attention should be paid to the release of "quasi-fiscal" functions following the implementation of policy financial tools and the early allocation of new special bond quotas [1][3]. Revenue Summary - In the first eight months of 2025, national general public budget revenue grew by 0.3% year-on-year, with August's growth at 2%, down from 2.6% in July. The narrowing decline in PPI has alleviated the drag on tax revenue, while the income from securities transaction stamp duty has provided notable support. The internal growth momentum of the economy still needs enhancement, and macro policies require further strengthening [1]. - Corporate income tax revenue saw a significant rebound, primarily due to a low base from the previous year. Personal income tax and consumption tax revenue growth slowed, although personal income tax still performed well, while consumption tax remained at a low level. The high growth in securities transaction stamp duty revenue is linked to recent stock market activity. Additionally, vehicle purchase tax and land value-added tax revenues showed significant declines, while export tax rebate revenue growth rebounded, indicating a need to boost domestic demand [1]. Expenditure Summary - In the first eight months of 2025, national general public budget expenditure increased by 3.1% year-on-year, with August's growth at 0.8%, down from 3% in July, likely constrained by revenue. Expenditure in the livelihood sector continued to grow significantly, while infrastructure spending remained low. Social security, employment, and education expenditures maintained high growth rates, while spending on energy conservation, environmental protection, and transportation saw a substantial rebound, mainly due to a low base from the previous year. Expenditures in urban and rural communities, as well as agriculture, forestry, and water resources, experienced a widening decline [2]. Government Fund Summary - In the first eight months of 2025, national government fund budget revenue decreased by 1.4%, with August's growth at -5.7%, down from 8.9% in July. This decline is attributed to the pressure on the land market due to adjustments in the real estate market. Conversely, government fund budget expenditure grew by 30.0% year-on-year, driven by accelerated issuance and utilization of bond funds by various levels of government. In August, government fund budget expenditure increased by 19.8%, down from 42.4% in July, but still showed strong performance [2]. Policy Focus - Moving forward, it is essential for fiscal policy to continue to strengthen. The implementation of policy financial tools is expected to release "quasi-fiscal" functions, which may support the expansion of domestic demand. Additionally, the Ministry of Finance has indicated the early allocation of part of the new local government debt limit for 2026, aiming to utilize debt capacity proactively and address existing hidden debt [3].