Ministry: Govt budgetary revenue up 5.5% in 2020 Q4

The Chinese government's budgetary revenue peaked in the fourth quarter of 2020, at a year-on-year growth rate of 5.5 percent, thanks to the economic recovery and supportive fiscal measures that promoted industrial production, the Ministry of Finance reported on Thursday.

The annual general public budget revenue stood at 18.29 trillion yuan ($2.82 trillion) last year, dropping 3.9 percent on a yearly basis, which was "better than expected", the ministry told media in a written interview published on its website.

Government spending increased by 2.8 percent year-on-year to 24.56 trillion yuan, which has supported investment in key areas including public health, social security and employment. Spending on improving the public health system that directly related to coronavirus control rose by 74.9 percent, according to the ministry.

China's economy shows a trend of stable recovery, while the COVID-19 pandemic continues and the external environment has uncertainties, with some industries still digesting the negative impacts. The Ministry of Finance will further implement the tax and fee reduction policy and maintain consistent and stable fiscal actions, it said.

Measures include the value-added tax reform, additional individual income tax deductions, and tax relief for small and micro enterprises, the ministry indicated.