Key facts
- China's general public budget revenue rose 6.6% year-on-year in May.
- Revenue growth was attributed to rising prices and steady economic expansion.
- Government spending declined for the second consecutive month.
China's general public budget revenue saw a year-on-year increase of 6.6% in May, primarily fueled by rising prices and sustained economic expansion. Despite this revenue growth, general public budget spending experienced a contraction for the second consecutive month. This divergence suggests that while government income is being bolstered by market conditions, overall spending is showing a retrenchment, challenging Beijing's stated intention to adopt a more proactive fiscal policy.