(Yicai Global) Feb. 14 -- Four Chinese provincial-level regions that are rich in energy resources scored double-digit growth in fiscal revenue last year, when much of the rest of the country is logging negative growth due to the fallout from the Covid-19 pandemic and tax relief measures.

Coal-rich Shanxi province, which is the biggest coke producer in the country, posted the fastest growth of all China’s 31 provincial-level regions at 21.8 percent from 2021 to attain the most revenue of the four at CNY345.4 billion (USD50.6 billion), according to data released by the northern province’s financial department.

And northern Inner Mongolia Autonomous Region, Shaanxi province and northwestern Xinjiang Uyghur Autonomous Region, all big coal producing areas, were not far behind with year-on-year jumps of 20.2 percent, 19.3 percent and 14.9 percent respectively, according to their 2022 budget executive reports.

By comparison, across the country, local governments’ general public budget income fell by an average of 2.1 percent last year from the year before, according to the Ministry of Finance.

The four energy-rich regions attributed the fast growth in fiscal revenue to the soaring price and increased output of coal, oil and other sought-after minerals. Shaanxi and Xinjiang are two of the biggest coal and oil producers in the country, while Inner Mongolia has over 20 kinds of minerals, including coal, lead and rare earths. The resulting increase in revenue for producers meant a bigger tax haul for the local governments.

Shaanxi province reported a 29 percent year on year jump in tax revenue, and of this resources tax surged 79.5 percent, it said. Business tax soared 31.4 percent, value-added tax 26.9 percent and personal income tax 32.1 percent.

The four regions also beat their annual targets set out at the start of the year. Inner Mongolia’s revenue was 17.7 percent higher than the initial goal, both Shaanxi and Shanxi province were about 15 percent higher and Xinjiang 9 percent higher.
But after the big increases last year, all four regions are cautious about public budget income growth this year. Xinjiang is the most optimistic, forecasting 10 percent growth. Shanxi predicts 5 percent growth, Shaanxi 3 percent and Inner Mongolia just 0.9 percent.

Editors: Tang Shihua, Kim Taylor