Stable Growth of Chinese Financial Revenues Amid Slowing Government Spending

China's financial revenues recorded stable growth of 0.8% in the first eleven months of 2025 year-on-year, unchanged from the growth rate recorded from January to October, according to data from the Ministry of Finance released on Wednesday.

Total financial revenues rose to about 20.05 trillion yuan during the mentioned period. Central government revenues were approximately 8.85 trillion yuan, marking a decline of 1% compared to the same period last year, while local government revenues increased by 2.2% to reach 11.21 trillion yuan.

On the component side, tax revenues rose by 1.8% year-on-year to 16.48 trillion yuan, while non-tax revenues fell by 3.7% to 3.57 trillion yuan, reflecting ongoing pressures on some unconventional income sources for the government.

In contrast, financial spending expanded by 1.4% to 24.85 trillion yuan, showing a slowdown compared to the 2% growth in the first ten months of the year. Central government spending rose by 6.2%, while local governments recorded limited growth of 0.6%.

According to official data, expenditures on education reached about 3.79 trillion yuan, an increase of 4.4%, while spending on scientific research and technology rose to 889.2 billion yuan, achieving a strong growth of 7.9%. Spending on social security and employment increased by 8.1% to 4.07 trillion yuan.

These figures reflect China's ongoing approach to support social sectors and invest in innovation, alongside a relative moderation in the pace of overall spending amid a challenging economic environment characterized by internal challenges and increasing external pressures.