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[Local general public budget revenue increased by 0.9% year-on-year in the first half of the year, a decrease of 12.6 percentage points from the same period last year.]

Local fiscal operations are generally stable, but the pressure to increase revenue remains high.

Yicai.com found that the fiscal departments of many provinces have disclosed the fiscal revenue and expenditure data for the first seven months. Among them, the general public budget revenue of Jilin, Hunan, Sichuan, Guizhou, Hainan, Yunnan, Ningxia and other places has maintained year-on-year growth, and most of the growth rates are less than 2%; the revenue of Jiangxi and Shanxi has declined year-on-year.

Luo Zhiheng, chief economist of Guangdong Securities, told Caixin that judging from the published data, local fiscal revenue is still under pressure. Nationwide, local general public budget revenue increased by 0.9% year-on-year in the first half of 2024, a decrease of 12.6 percentage points from the same period last year. From a local perspective, although some regions achieved positive growth in general public budget revenue in the first seven months, the growth rate was narrower than last year, and the revenue growth rate in some regions was negative.

Luo Zhiheng analyzed that the primary factor for the continued sluggish local tax revenue is the impact of the slowdown in economic growth. Economic growth is the basis for tax revenue growth. When economic growth slows down, tax revenue growth will also be constrained. Secondly, the price level is falling, and the prices of some energy and mineral products continue to fall, dragging down the tax revenue growth rate. In addition, the decline in some tax revenues is also affected by the base effect, that is, the high base of the same period last year led to a decline in the year-on-year growth rate this year.