Key facts
- China's fiscal revenue grew 4.7% in the first half of 2026.
- Fiscal expenditure increased 1.5% in the first half of 2026.
- In September alone, fiscal revenue saw its highest single-month growth of about 8% year-on-year.
- China's GDP expanded 4.7% in the first half of 2026.
- Local government special bond issuances reached 3.69 trillion yuan in the first nine months of the year.
China's fiscal revenue saw a notable increase of 4.7% in the first half of 2026 compared to the same period last year, marking an acceleration from the 4% growth recorded in the January-May period. This expansion was driven by sustained economic recovery and robust industrial output, according to the Ministry of Finance.
Fiscal expenditure also saw an uptick, rising by 1.5% in the first half of the year, an increase from the 0.8% gain observed in the first five months. In September alone, fiscal revenue experienced its highest single-month growth of approximately 8% year-on-year, fueled by faster industrial output growth and a recovery in the services sector, alongside higher corporate profits and imports.
Overall economic performance in the first half of 2026 was also strong, with China's gross domestic product (GDP) growing by 4.7% year-on-year, generating around 69.57 trillion yuan in output. The second quarter saw a 4.3% expansion. The Ministry of Finance highlighted that tax revenue increased by 4.4% in the first five months, while non-tax revenue grew by 2.2%.
Analysts suggest that China's proactive fiscal policy has been a strong support for economic growth, and this stance is expected to continue. The government aims to cut taxes and fees by more than 2.5 trillion yuan annually to aid the corporate sector, particularly small businesses. Local government special bond issuances, primarily funding infrastructure projects, reached 3.69 trillion yuan in the first nine months, accounting for 98.6% of the annual quota.