China’s government is turning on the fiscal taps in an attempt to bolster flagging economic growth.
According to Ministry of Finance, government fiscal expenditure jumped by 19.9% in June compared to the levels of a year earlier, far exceeding the 1.7% increase recorded revenues.
That divergence continued the trend seen in the first half of the year with expenditure rising 15.1% from the same period in 2015, more than double the 7.1% growth in government revenues.
Later today China’s National Bureau of Statistics will release Q2 GDP data, with year-on-year growth tipped to decelerate to 6.6%, the slowest level seen since the global financial crisis.
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