Tax collections from a buoyant stock market mask slow government spending and prolonged slump in the housing market
China’s fiscal revenue rose 11.7% in July compared with the same period a year earlier, marking the fastest monthly growth since the end of 2024, although government spending remained sluggish.
Data from the Ministry of Finance showed that general public budget (GPB) revenue was boosted by a 13.9% increase in tax collection. The GPB is the largest of the 4 budgets in the Chinese tax system.
A booming stock market drove a 108.6% increase in stamp duty revenue from bond trading, while corporate and individual income taxes soared 20.8% and 25.9% respectively.
Robust revenue collection contrasts sharply with weak public spending. GPB spending increased just 0.5% in July.
In the first 7 months, GPB expenses reached 54.3% of the annual budget, marking the 2nd lowest completion rate for the period in 5 years, according to calculations by Caixin.
Meanwhile, the housing crisis continued to affect local finances. Revenue from the sale of state lands, a crucial source of funding for local governments outside the scope of the GPB, fell 27.1% in July.
This report was originally published in English by Caixin Global on August 24, 2026. It was translated and republished by Poder360 under mutual content sharing agreement.
Source: https://www.poder360.com.br/poder-china/receita-fiscal-da-china-dispara-enquanto-os-gastos-estagnam/
