Securities Times reporter He Jueyuan

On May 20, the Ministry of Finance released the fiscal revenue and expenditure in April 2024. Data shows that from January to April, the national general public budget revenue reached 8092.6 billion yuan, an increase of about 2% year on year after deducting the impact of special factors. On the whole, the fiscal revenue in the first four months maintained a restorative growth trend.

In terms of tax revenue and non tax revenue, from January to April, the national tax revenue was 6693.8 billion yuan, a year-on-year decrease of 4.9%, and an increase of about 0.5% after deducting the impact of special factors; Non tax income was 1398.8 billion yuan, up 9.4% year on year.

As for the special factors affecting fiscal revenue, Wang Dongwei, Vice Minister of the Ministry of Finance, pointed out at the press conference of the Office of the National People's Congress of the People's Republic of China, mainly that the partial tax relief for small, medium-sized and micro enterprises in the manufacturing industry in 2022 raised the base number in the first few months of 2023, and that the four tax reduction policies introduced in the middle of 2023 formed a tail raising reduction in fiscal revenue this year.

From the perspective of main taxes, domestic VAT, personal income tax and stamp tax on securities transactions in the first four months decreased by 7.6%, 7% and 52.7% respectively year on year. Among them, the domestic VAT is mainly affected by factors such as tax postponement of some small and medium-sized micro enterprises in 2022 and the increase of the base in 2023; The individual income tax is mainly affected by the policy of raising the standard of special additional deduction of individual income tax issued in the middle of last year; The stamp duty on securities transactions was mainly affected by the halving of the levy since August 28 last year.

In the first four months, domestic consumption tax, corporate income tax, export tax rebate, and vehicle purchase tax performed well, with year-on-year growth of 8.3%, 0.9%, 18.8%, and 6.2% respectively. The domestic consumption tax is mainly due to the growth of production and sales of consumer goods such as cigarettes, alcohol and refined oil; The corporate income tax is mainly driven by the profit growth of industrial enterprises; Export tax rebate reflects its strong support for foreign trade export growth; The vehicle purchase tax shows the steady growth of production and sales in the automobile market since this year.

From January to April, the national general public budget expenditure reached 8948.3 billion yuan, up 3.5% year on year, 31.3% of the completed budget, higher than the average level in recent three years. In the main areas of expenditure, social security and employment expenditure was 1570.2 billion yuan, up 3.8%; Education expenditure was 1348.5 billion yuan, up 3.1%; Expenditure on housing security was 265.6 billion yuan, up 7.8%.

This year, financial departments at all levels will strengthen the overall planning of financial resources, speed up the allocation of budgets and the use of additional treasury bonds, and strengthen financial support for major national strategic tasks and basic people's livelihood. Wang Dongwei previously said that the Ministry of Finance will actively support the improvement and enhancement of people's livelihood.

It is worth noting that by the end of February this year, the Ministry of Finance has released all the additional 1 trillion yuan of treasury bonds to local governments. From the data of the previous four months, the urban and rural community expenditure and agricultural, forestry and water expenditure that the additional treasury bond funds mainly invested in increased by 11.5% and 12.7% respectively year on year, both maintaining double-digit growth.

At present, the issuance of ultra long term special treasury bonds has been started, and the issuance has started from the middle of May to the middle of November. Considering that the meeting of the Political Bureau of the Central Committee has proposed to "speed up the issuance and use of special bonds", market institutions generally expect that new special bonds will be issued in the second and third quarters, and broad fiscal expenditure is expected to gradually accelerate at the peak or in the third quarter.