(Yicai) March 6 -- China’s general public budget revenue, or total government income raised through taxes and other sources, is expected to grow by 0.1 percent to CNY21.99 trillion (USD3 trillion) this year.

The central government is expected to raise CNY9.7 trillion (USD1.3 trillion), or 3.5 percent less than last year, according to a budget report disclosed by Xinhua News Agency yesterday. But after one-time factors are excluded, the figure represents a 2.1 percent increase. Local governments may raise CNY12.29 trillion, a 3 percent increase.

Growth will hinge on rising tax income, the report said.

Last year, China’s general public budget revenue rose 1.3 percent to CNY21.97 trillion, with most of it coming from taxation. The tax take was CNY17.5 trillion, a decrease of 3.4 percent, while other types of income jumped over 25 percent to CNY4.473 trillion.

This year's ongoing economic recovery and positive momentum will support fiscal income growth, according to the report. The government set an annual economic growth target of “around 5 percent” yesterday, unchanged from last year.

It also fixed the fiscal deficit target at around 4 percent of gross domestic product, the highest level on record, as part of a “more proactive” fiscal policy aimed at stimulating economic growth.

One key income category is government funds revenue, and for local governments a significant part of that comes from land transfer fees. This year, local government funds revenue is predicted to stop falling and climb 0.1 percent to CNY5.74 trillion. Last year, regional revenues from land sales slumped 16 percent year on year, marking the third straight annual decline.

Recovery varies by region. Twenty provinces anticipate gains in government funds revenues, with Heilongjiang, Gansu, Hebei, and Liaoning expecting relatively rapid increases. The other 10 provinces forecast a downturn, with areas such as Guizhou, Jiangsu, and Sichuan predicting double-digit pullbacks.

Editor: Emmi Laine