In the first eight months, the national general public budget revenue increased by 10%, and expenditures in key areas such as people's livelihood were better guaranteed

The Ministry of Finance recently released the operation of fiscal revenue and expenditure from January to August this year. From January to August, the national general public budget revenue totaled 15179.6 billion yuan, up 10% year on year. Among them, tax revenue was 12788.5 billion yuan, up 12.9% year on year; Non tax income was 239.1 billion yuan, down 3.6% year on year. From January to August, the national general public budget expenditure was 17138.2 billion yuan, up 3.8% year on year, and the expenditure in key areas such as people's livelihood was better guaranteed.

From the perspective of local revenue, from January to August, the local general public budget revenue was 8210.9 billion yuan, up 10.3% year on year. The revenue of the eastern, central, western and northeastern regions increased by 10.2%, 6.9%, 13.2% and 14.8% year on year respectively. The revenue of 31 provinces kept a positive growth year on year, of which 3 provinces increased by more than 20%, 12 provinces increased by 10% - 20%, and 16 provinces increased in single digits.

The Ministry of Finance said that the growth of fiscal revenue, in addition to the sustained recovery of the economy and the overall recovery, was mainly due to the implementation of the large-scale VAT rebate policy in April last year, and the large number of centralized tax rebates, which reduced the base. Affected by this, tax revenue, especially domestic VAT, increased significantly, which correspondingly increased the growth of fiscal revenue.

From the perspective of tax revenue, from January to August, the domestic value-added tax increased by 70.7%, mainly due to the large tax rebates and low base in the same period last year. Domestic consumption tax fell by 9%, mainly due to the high base in the same period last year. The value-added tax and consumption tax on imported goods decreased by 8.3%, and the tariff decreased by 12.7%. After deducting the impact of the high base in the same period last year, it basically matched the growth trend of general trade imports. The corporate income tax decreased by 7.6%, mainly due to the decline in corporate profits and the fact that in July enterprises enjoyed the first half of the year's R&D expenses plus deductions in advance. Individual income tax decreased by 0.1%, mainly due to the year-on-year overpayment of tax rebates for the final settlement of comprehensive income of individual income tax, which reduced the growth rate.

Yao Dongmin, a professor at the Central University of Finance and Economics, analyzed that if the stimulus effect of the proactive fiscal policy is fully released in the future, social investment is expected to gradually become stronger, and the cash flow of residents' income will also be restored. It is expected that the fiscal revenue dominated by tax revenue will gradually increase.

Since this year, while optimizing and improving tax support policies and timely introducing new tax reduction policies, the financial department has taken effective measures to reasonably accelerate the progress of financial expenditure and promote the sustainable recovery of the economy. From January to August, cumulative social security and employment expenditure increased by 8.1%, education expenditure by 4.5%, health expenditure by 5.8%, agriculture, forestry and water expenditure by 2.9%, and housing security expenditure by 7.1%.

"The year-on-year growth rate of social security expenditure, health expenditure, education expenditure and housing security expenditure is higher than the overall level of budget expenditure." Yao Dongmin believes that the steady growth of livelihood expenditure is extremely important to stabilize expectations and drive consumption. The next financial fund arrangement should play a better role in guiding and leveraging, effectively driving the expansion of social investment and promoting consumption. "We should give priority to the recovery and expansion of consumption, and financial short-term cash flow should be used to enhance consumption capacity, improve consumption conditions, and increase consumption scenarios, so that consumption potential can be fully released."

key word: Budget revenue August Tax revenue General trade Year on year growth