Economic Buzz: China?s fiscal spending rises, but revenue growth remains tepid

China reported a 3.6% rise in fiscal expenditure to CNY 4.67 trillion in the first two months of 2026, led by stronger central and local government spending. Outlays on social security and employment surged 8.6%, while health spending jumped 17.3%, highlighting targeted fiscal support. However, revenue growth remained subdued, edging up just 0.7%, with tax receipts nearly flat?signaling weak underlying momentum. The divergence between rising expenditure and soft revenue collections underscores a cautious fiscal backdrop, as authorities navigate uneven economic recovery.

Powered by Commodity Insights