China Spending Outpaces Revenue as Jan–July Fiscal Intake Stalls

China’s Ministry of Finance said nationwide fiscal revenue edged up 0.1% in the first seven months of 2025, indicating almost flat growth compared with the same period a year earlier. Tax receipts, the largest component of revenue, slipped 0.3%, while income from government land sales—a key funding source for local authorities—fell 4.6%. Fiscal expenditure rose 3.4% year on year during the January-to-July period, outpacing the modest revenue increase. The divergence highlights the pressure on public finances as Beijing balances higher spending commitments with tepid income growth.