Aug 21, 2026 (InvestinChina.asia) – China’s national fiscal revenue grew 5.8% year-on-year in the first seven months of 2026, driven by robust tax receipts, though land sales continued to weigh on local government finances, official data showed on Friday.
The Ministry of Finance reported that general public budget revenue reached 14.37 trillion yuan ($1.97 trillion) between January and July, with tax revenue rising 6.7% to 11.84 trillion yuan. Non-tax revenue edged up 1.6% to 2.53 trillion yuan.
Central government revenue climbed 9.1% to 6.39 trillion yuan, outpacing local government revenue, which grew 3.3% to 7.98 trillion yuan.
Tax Highlights
Value-added tax, the largest single revenue source, rose 6.1% to 4.51 trillion yuan. Corporate income tax increased 7.2% to 3.28 trillion yuan, while personal income tax surged 14.9% to 1.07 trillion yuan.
Consumption tax fell 2.2% to 998.4 billion yuan, reflecting softer household spending. Import-related taxes jumped 12.3% to 1.16 trillion yuan, while export rebates climbed 5.2% to 1.48 trillion yuan.
Stamp duty collections soared 38% to 353 billion yuan, with the securities trading component nearly doubling — up 99.2% to 186.4 billion yuan — a sign of heightened stock market activity.
Property-related taxes showed mixed results. Property tax rose 6.7% to 341.5 billion yuan, but deed tax dropped 14.5% and land value-added tax fell 15.3%, underscoring persistent weakness in the real estate sector.
Vehicle purchase tax climbed 13% to 133.7 billion yuan, pointing to resilient auto demand.
Spending Trends
General public budget expenditure grew at a slower 1.3% pace to 16.29 trillion yuan. Central government spending rose 6.2%, while local outlays expanded just 0.5%.
Social security and employment received the largest allocation at 2.95 trillion yuan, up 7%. Healthcare spending jumped 9.8% to 1.36 trillion yuan. Education spending edged up 0.7% to 2.46 trillion yuan, while science and technology outlays rose 1.5% to 540.8 billion yuan.
Several categories saw cuts: culture and tourism fell 6.9%, environmental protection dropped 11.9%, and agriculture, forestry and water conservancy declined 6.8%. Debt service payments rose 5.2% to 796.6 billion yuan.
Land-Sale Slump Weighs on Local Finances
The government fund budget, which tracks land sales and other dedicated revenues, contracted sharply. Total fund revenue plunged 21.2% to 1.82 trillion yuan. Local government fund revenue tumbled 24.8%, with land sales — a critical funding source for local authorities — plummeting 30.8% to 1.17 trillion yuan.
Fund expenditures fell 16.4% to 4.54 trillion yuan. Central government fund spending cratered 61.8%, while local fund outlays dropped 9.5%. Expenditures related to land sales declined 17.4% to 1.95 trillion yuan.
The data underscore the widening fiscal divergence between the central government — buoyed by stronger tax collection — and local administrations grappling with the prolonged property downturn. Analysts expect Beijing to step up transfer payments and accelerate local government bond issuance to ease mounting fiscal pressures at the sub-national level.