China's fiscal revenue falls 1.6% YoY in Jan-Feb 2025

China’s fiscal revenue fell by 1.6 per cent year on year (YoY) in the first two months of 2025, reaching nearly 4.39 trillion yuan (~$611.59 bn), according to data released by the Ministry of Finance.

Central government revenue dropped by 5.8 per cent YoY to 1.95 trillion yuan, while local governments collected 2.44 trillion yuan, marking a modest 2 per cent increase compared to the same period last year.

Despite the revenue dip, fiscal expenditure rose by 3.4 per cent YoY to nearly 4.51 trillion yuan. Central government expenditure surged by 8.6 per cent, while local government spending grew by 2.7 per cent, as per domestic media reports.

At the China Development Forum 2025, Finance Minister Lan Fo’an announced that the country would implement a more proactive fiscal policy this year. A key focus of this year’s fiscal agenda is to significantly boost consumption and improve investment efficiency to expand domestic demand. Lan noted that the central government is rolling out coordinated measures on both the supply and demand sides to stimulate consumer activity.

"China has the world's most promising super-sized market, with immense potential for consumption growth," said Lan.

As part of these efforts, China plans to issue 1.3 trillion yuan (~$181 billion) in ultra-long special treasury bonds in 2025, an increase of 300 billion yuan from last year. The government funding for the national consumer goods trade-in programme will double, rising from 150 billion yuan last year to 300 billion yuan in 2025.

Fibre2Fashion News Desk (HU)