Core Viewpoint - The article highlights the overall stability of local government finances in China during the first half of the year, despite facing tight fiscal balances and pressures on revenue growth [1][2][3]. Revenue Growth - In the first half of the year, local general public budget revenue increased by 1.6% year-on-year, with 27 out of 31 provinces reporting revenue growth [4][6]. - The revenue growth was primarily driven by non-tax income, indicating a weak recovery in local finances [2][4]. - Jilin province exhibited the highest revenue growth at 16.4%, attributed to the activation of state-owned resources, which saw a 109.2% increase in related income [5][6]. Expenditure Trends - Local general public budget expenditure increased by an average of 2.6%, outpacing revenue growth, as local governments maintained spending to support livelihoods and stabilize the economy [1][4]. - Despite the overall increase in expenditure, many local governments reported rising rigid expenditures, leading to persistent fiscal imbalances [1][11]. Regional Disparities - There are significant disparities in fiscal performance across regions, with some provinces like Shaanxi and Shanxi experiencing revenue declines of 7.2% and 6.3%, respectively, largely due to falling coal prices [6][8]. - In contrast, cities within provinces showed varied performance, with some counties reporting substantial revenue growth while others faced fiscal difficulties [9][10]. Future Outlook - The second half of the year is expected to present continued challenges for local fiscal revenues, with many provinces indicating that the pressure on income will persist [12][13]. - Local governments are exploring measures to enhance revenue, such as asset management and seeking central government support, while also tightening expenditure [14][15].