China Government Revenues

China's fiscal revenue grew 1.3% yoy in 2024, easing sharply from a 6.4% rise in 2023 due to slowing domestic demand and a slump in the property market, which is weighing on the economy. Fiscal revenues in 2024 totaled CNY 21.97 trillion, including CNY 17.497 trillion in tax receipts and CNY 4.473 trillion in non-tax income. Tax revenue fell 3.4%, while non-tax revenue surged 25.4%. Revenue from land sales by China's local governments shrank 16%, highlighting the deep property downturn. In the past, such revenues have been a key driver of regional economic growth measures, and the sharp drop has been a major factor weighing on overall business activity. For December 2024 alone, fiscal revenue increased to CNY 2.07 trillion from CNY 1.81 trillion in November. Meanwhile, budgetary expenditure rose 3.6% in 2024, easing from 5.4% in 2023. China's top leaders have pledged to adopt a more proactive fiscal policy this year as external headwinds loom with a second Trump administration.