China’s fiscal revenue climbs 5.3 percent as economy steadily recovers

China’s fiscal revenue continued to rise for the third straight month in August, showing positive signs of steady economic recovery, official data showed Friday.

The country’s fiscal revenue climbed 5.3 percent last month to reach 1.2 trillion yuan (177.5 billion U.S. dollars), compared with 3.2 and 4.3 percent in June and July this year.

In the January-August period, fiscal revenue dropped 7.5 percent to reach 12.68 trillion yuan, narrowing from a decline of 8.7 percent in the first seven months, according to the Ministry of Finance.

Tax revenue dropped 7.6 percent from a year earlier to reach 10.82 trillion yuan in the first eight month, while non-tax revenue fell seven percent to 18.53 trillion yuan during the period, said the ministry.

Specifically, the domestic value-added tax stood at 388.6 billion yuan during the first eight months, down 15.2 percent year-on-year, while the domestic consumption tax was 982.2 billion yuan, down 5.7 percent year on year. The value-added tax and consumption tax for imported goods fell 11.5 percent year on year during the period.

In August, fiscal spending went up 8.7 percent year on year as local governments stepped up the implementation of major projects. The country’s fiscal spending dropped 2.1 percent year on year to 14.99 trillion yuan during the eight-month period.

China has launched a slew of tax cuts policy issued special treasury bonds, to bolster businesses hit in the coronavirus pandemic. The world’s second-largest economy recovered quickly in the April to June period with a growth rate of 3.2 percent. 

The country’s exports surged 9.5 percent and the value-added industrial output rose 5.6 percent year on year in August.