China's Central Government Budget Deficit Increased in July

China's central government deficit increased to RMB 476.8bn in July 2020 due to a surge in government spending and a revenue cooldown. The central government revenue growth decelerated from 5% y/y in June to 1.2% y/y in July reflecting the modest economic activity in China during the month. 

The general public budget revenue accelerated by 4.6% y/y in July to RMB 947.2bn. However, the government managed fund budget, excluding the revenue from state-owned land-use rights, decreased by 18.2% y/y. On the other hand, the central government expenditure in China soared by 59.9% y/y in July driven by the increase in local government transfers.

Further data and analysis on China’s economy is available on the CEIC China Economy in a Snapshot – Q3 2020 report.