(Yicai) Jan. 27 -- China's fiscal income grew 1.3 percent last year, faster than the 1.1 percent clip notched up in the first 11 months and despite challenges earlier in the year, according to the latest official data.

General public budget revenue, the sum total of tax and non-tax revenues, rose to CNY21.97 trillion (USD3.02 trillion) in the 12 months ended Dec. 31 from a year earlier, the Ministry of Finance announced on Jan. 24.

Fiscal revenue fell 2.2 percent in the first three quarters of last year because of weak domestic demand, tax cuts, and falling producer prices. It has regained momentum since late September after the government introduced an economic stimulus package.

The tax haul fell 2.4 percent to CNY17.49 trillion, below China’s annual gross domestic product growth of 5 percent. According to analysts, this was mainly due to the effects of a slower economy on key sectors such as real estate, special policy-related factors, including deferred taxes for small manufacturers which inflated the year-earlier base, and the lagging effects of tax reduction policies.

The breakdown of revenue sources shows differences across tax categories and a notable increase in non-tax revenue, driven by government initiatives.

Revenue from value-added tax, the biggest source, sank 3.8 percent because of special factors and falling factory gate prices, while that from corporate income tax dipped 0.5 percent on lower profits, and consumption tax rose 2.6 percent on higher sales of refined oil products, cigarettes, and alcohol. Revenue from personal income tax fell 1.7 percent because of the carry-over effect of more tax cuts in mid-2023.

Export tax rebates jumped 12.6 percent to CNY1.93 trillion (USD265.7 billion).

Non-tax revenue soared 25.4 percent, mainly driven by special proceeds from central government units and efforts local governments to monetize assets, which contributed about 24 percentage points to the total. Due to sluggish government sales of land for development, budget revenue plunged 12.2 percent to CNY6.21 trillion.

General public budget expenditure climbed 3.6 percent to CNY28.46 trillion, the ministry’s data also showed, with social security, employment, and education the top categories. Spending on science and technology jumped 5.7 percent.

Editor: Futura Costaglione