China’s fiscal revenue fell slightly in the first four months of 2025, but the decline eased compared to the first quarter, signaling tentative stabilization amid economic headwinds. From January to April, revenue totaled 8.06 trillion yuan ($1.12 trillion), down 0.4% year-on-year—an improvement from a 1.1% drop in Q1.
Tax revenue fell 2.1% to 6.56 trillion yuan, while non-tax income rose 7.7%. April marked the first month this year with positive tax growth, up 1.9% year-on-year. Key contributors included value-added tax, consumption tax, and personal income tax.
Meanwhile, fiscal spending surged 4.6% to 9.36 trillion yuan—the fastest pace since 2020—as Beijing ramped up domestic stimulus. Analysts see this as part of a broader effort to boost consumption and support recovery amid challenges like the ongoing property slump, weak confidence, and trade tensions with the U.S.
The government has accelerated the issuance of local special bonds and long-term treasury bonds to fund key infrastructure and social projects. Earlier this month, authorities also announced interest rate cuts and liquidity injections to cushion the impact of U.S. tariffs.
With recent signs of trade stabilization following talks in Geneva and stronger-than-expected exports, some analysts have upgraded China’s 2025 growth outlook, suggesting less urgency for further stimulus.