People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP Photo/Andy Wong)

China first-quarter fiscal spending quickens as Beijing seeks to spur growth

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BEIJING: China’s fiscal spending rose 2.6 per cent in the first quarter from a year earlier, accelerating from a 1 per cent increase in 2025, the finance ministry said on Friday (Apr 24), as Beijing steps up support for economic growth amid rising global risks caused by the Middle East conflict.

Fiscal expenditure in the January-March period totalled 7.47 trillion yuan (US$1.09 trillion), while fiscal revenue grew 2.4 per cent from a year earlier to 6.16 trillion yuan, the ministry said.

First‑quarter fiscal spending accounted for 24.9 per cent of annual budgeted expenditure - the highest in recent years - a finance ministry official told a media briefing, as authorities pledged to boost government outlays to help meet this year’s economic growth target.

At an agenda-setting meeting last month, Chinese policymakers vowed to continue a "more proactive" fiscal policy for 2026, promising record public spending, government bond issuance and transfers to local government.

Government land sales revenue fell 24.4 per cent over the first three months from a year earlier, the ministry also said.

Revenue from land sales by local governments was down 25.2 per cent on the year over the first two months of 2026, following a 14.7 per cent contraction in 2025.

Local governments have previously relied on the sales of land-use rights to property developers as a major source of revenue. A prolonged property market downturn that started in mid-2021 has continued to strain local government finances.

Source: Reuters/kl

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