China's fiscal revenue growth stable in Q1

China's fiscal revenue rose 13.6 percent year on year in the first quarter of 2018, the Ministry of Finance (MOF) said in a statement Monday.

A clerk counts RMB (renminbi) banknotes at a bank in Huaibei city, Anhui Province, January 22, 2015. [File Photo: IC]

The stable growth was mainly driven by a faster increase in tax revenue, as businesses posted better profits amid a solid economy, according to the MOF. Tax revenue accounted for 87.7 percent of fiscal revenue during the January-March period, up 2.5 percentage points from the level a year earlier.

The MOF cited an increase in factory activity, improving services, robust consumption, and steady foreign trade.

Tax revenue gained 17.3 percent, up from 14.7 percent growth a year ago. Meanwhile, non-tax revenue dropped 7.5 percent due to continued government efforts to reduce administrative fees and other charges to relieve the burden on businesses.

"The majority of sectors saw rapid tax growth," the MOF said. Ferrous metal smelting and rolling reported the highest tax growth, followed by broadcast television and filming, and hotel and catering sectors.

Fiscal revenue growth pointed to a steady economy, the MOF said.

With the economy on a firm footing and fiscal revenue increasing, China lowered its fiscal deficit target to 2.6 percent of GDP for 2018, down by 0.4 percentage points compared with 2017, the first drop since 2013.