Economic Buzz: China fiscal deficit hits record 4% of GDP

China?s fiscal revenue dropped 1.6% year-on-year in the first two months of 2025, reversing a 1.3% gain in 2024. Government spending increased by 3.4%, slightly lower than the 3.6% rise last year. To boost consumption and counter rising US tariffs, China set its 2025 fiscal deficit target at a record-high CNY 5.66 trillion, or 4% of GDP, up from 3% in 2023. Authorities have pledged a more proactive fiscal policy to support the 5% GDP growth target for 2025.

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