On April 24, the Ministry of Finance held a press conference on fiscal revenue and expenditure for the first quarter of 2026. Wang Jianxun, Director of the Treasury Payment Center of the Ministry of Finance, stated that the national general public budget revenue reached 6.16 trillion yuan in the first quarter, a year-on-year increase of 2.4%. The growth rate was 1.7 percentage points higher than that of the first two months and exceeded the levels of the same period in the past three years, reflecting a strong and favorable start for China's economic performance in the inaugural year of the 15th Five-Year Plan.
Wang Jianxun noted that in the first quarter of this year, the growth rates of China's major macroeconomic indicators rebounded, with positive changes in prices. The industrial producer price index (PPI) turned from a decline to an increase in March, ending a 41-month streak of year-on-year decreases. Rapid growth in goods imports and exports provided strong support for the increase in fiscal revenue.
Fiscal revenue maintained steady growth in the first three months, with the growth rate hitting a three-year high for the same period. The national general public budget revenue totaled 6.1613 trillion yuan, a year-on-year increase of 2.4%. Tax revenue reached 4.8505 trillion yuan, up 2.2% year-on-year, while non-tax income amounted to 1.3108 trillion yuan, rising 2.9%.
By administrative level, the central government's general public budget revenue was 2.4991 trillion yuan, up 2.7% year-on-year, while local governments' general public budget revenue reached 3.6622 trillion yuan, increasing 2.1%, a growth rate comparable to the same period last year. Regionally, eastern, central, western, and northeastern areas all recorded revenue growth. Among 31 provinces, 25 maintained positive growth.
Shi Yinghua, Director of the Macroeconomic Research Center at the Chinese Academy of Fiscal Sciences, commented that positive macroeconomic developments have underpinned the growth in fiscal revenue, while the sound performance of fiscal revenue further confirms the continued strengthening of the macroeconomic foundation. The combined effects of last year's existing policies and this year's proactive fiscal measures have created an integrated policy impact that is steadily taking effect. The robust start to the national economy in the first quarter is closely linked to the positive role of macroeconomic policies, including fiscal measures. As a barometer of the economy, tax revenue clearly reflects the steady recovery and improvement of economic conditions.
Tax revenue, which constitutes the bulk of fiscal income, demonstrated stability in the first quarter. Nationwide tax revenue reached 4.85 trillion yuan, rising 2.2% year-on-year, with the growth rate accelerating by 2.1 percentage points compared to the first two months. By tax category, domestic value-added tax (VAT) amounted to 2.1473 trillion yuan, up 4.9%, primarily driven by growth in industrial and service sectors and a narrowing decline in the industrial producer price index. VAT and consumption tax on imported goods totaled 458.8 billion yuan, increasing 12.9%, largely due to a strong rebound in import trade. Securities transaction stamp tax surged 78.1%, reflecting active stock market trading and rising transaction volumes.
Shi Yinghua explained that VAT, as China's largest tax category, is levied on the value added of goods and services, and its growth indicates economic vitality. Steady growth in industry and services, along with active business transactions, directly contributes to VAT growth. Meanwhile, the narrowing decline in PPI has also supported the increase in domestic VAT.
While tax revenue steadily recovered, non-tax income also saw modest growth in the first quarter, though some policy-driven reductions continued to take effect. National non-tax income reached 1.31 trillion yuan, up 2.9% year-on-year. Revenue from the compensated use of state-owned resources (assets) grew 7.5%, attributed mainly to local governments' efforts to revitalize assets through various channels, including increased income from the disposal, leasing, and lending of administrative and institutional assets. However, administrative and institutional fee income fell 8.2%, largely due to the exemption of childcare and education fees for children in public kindergartens starting from the last autumn semester.
Fiscal expenditures were front-loaded alongside steady revenue growth. National general public budget expenditures were allocated to safeguard and improve livelihoods, promote economic and social development, maintain national security, and ensure the normal functioning of institutions. In the first quarter, national general public budget expenditures totaled 7.47 trillion yuan, up 2.6% year-on-year, accounting for 24.9% of the annual budget.
Wang Jianxun emphasized that fiscal expenditures were front-loaded in the first quarter, with the spending pace being the fastest in five years. Financial departments at all levels implemented proactive fiscal policies, maintained necessary expenditure intensity, and reasonably accelerated spending progress, ensuring adequate funding for key areas such as livelihoods.
Breakdowns of expenditures show that health spending rose 12.1% in the first quarter, mainly for centralized育儿补贴 payments and increased subsidies to basic medical insurance funds. Social security and employment expenditures grew 9%, urban and rural community spending increased 2.8%, and housing security expenditures rose 6.3%.
Additionally, supported by the accelerated issuance of local government special bonds, local government fund expenditures maintained rapid growth. In the first quarter, national government fund budget expenditures reached 2.0387 trillion yuan, up 3.1% year-on-year. Central government fund budget expenditures increased 10.4% to 63.9 billion yuan, while local government fund budget expenditures grew 2.9% to 1.9748 trillion yuan. Expenditures related to revenue from state-owned land use rights transfers declined 12.1% to 956.8 billion yuan.
This year, the Ministry of Finance has actively guided local governments in issuing and utilizing special bonds. Qu Fuguo, Deputy Director of the Debt Management Department of the Ministry of Finance, reported that in the first quarter, 1.1599 trillion yuan of new special bonds were issued nationwide, an increase of 199.6 billion yuan or 20.8% year-on-year. These funds were primarily used for projects in key areas such as social services, transportation infrastructure, affordable housing, and urban renewal, as well as to replenish government fund resources and support the clearance of government arrears to enterprises. A total of 672.3 billion yuan in special bond funds was disbursed, up 209.6 billion yuan year-on-year, effectively driving the formation of physical工作量.
Regarding special bonds for replacing existing hidden debt, 960.4 billion yuan was issued in the first quarter, completing 48% of the annual quota of 2 trillion yuan. A total of 590.4 billion yuan in special bond funds was disbursed, providing substantial support for local governments in replacing existing hidden debts.
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