On April 24, the Ministry of Finance held a press conference to release the national fiscal revenue and expenditure data for the first quarter. The figures indicate a stable growth in fiscal revenue, proactive allocation of expenditures, and a strong start to the fiscal year.

Revenue growth showed an uptick. Data released shows that in the first quarter, the national general public budget revenue reached 6.1613 trillion yuan, a year-on-year increase of 2.4%. Wang Jianxun, Director of the Treasury Payment Center of the Ministry of Finance, stated that this 2.4% year-on-year growth rate was 1.7 percentage points higher than the growth rate recorded in the first two months of the year and exceeded the levels seen in the same period over the past three years. This reflects a vigorous and positive beginning for China's economic performance in the first year of the new five-year plan period.

Regarding tax revenue, the national tax revenue in the first quarter was 4.8505 trillion yuan, up 2.2% year-on-year. Specifically, domestic value-added tax (VAT) reached 2.1473 trillion yuan, increasing by 4.9%. VAT and consumption tax on imported goods amounted to 458.8 billion yuan, surging by 12.9%. VAT rebates for exported goods totaled 791.1 billion yuan, growing by 4.8%. Yang Zhiyong, President of the Chinese Academy of Fiscal Sciences, commented that the 4.9% growth in domestic VAT, the largest tax category, was primarily driven by the stable development of related industries and improvements in industrial producer prices, concretely reflecting the robust start of the national economy in the first quarter. He also noted that the strong momentum in foreign trade imports contributed significantly to the growth of VAT and consumption tax on imported goods.

Expenditures were deployed proactively. Data shows that in the first quarter, national general public budget expenditures totaled 7.4706 trillion yuan, a year-on-year increase of 2.6%, with the expenditure pace being the fastest in nearly five years. In Yang Zhiyong's view, both the expansion in expenditure scale and the accelerated pace of spending are strong demonstrations of the implementation of a more proactive fiscal policy this year. A faster expenditure pace can enhance the efficiency of the same level of spending.

Breaking down the expenditure categories, spending on health reached 655.4 billion yuan in the first quarter, up 12.1% year-on-year. Expenditure on social security and employment was 1.4785 trillion yuan, increasing by 9%. Spending on urban and rural community affairs amounted to 553.3 billion yuan, rising by 2.8%. Wang Jianxun explained that the rapid growth in health expenditure was mainly due to the concentrated distribution of child-rearing subsidies and increased subsidies to the basic medical insurance funds. These figures fully demonstrate the positive role of fiscal expenditure in safeguarding and improving people's livelihoods, with key livelihood areas being strongly supported in the first quarter, according to Yang Zhiyong.

Government bond issuance scale expanded. Government bonds, including ultra-long special treasury bonds and local government special bonds, are crucial components of the fiscal policy toolkit. Data shows that in the first quarter, treasury bond issuance exceeded 3.6 trillion yuan, an increase of nearly 10% year-on-year. Qu Fuguo, Deputy Director of the Debt Management Department of the Ministry of Finance, stated that the increased scale of treasury bond issuance in the first quarter provided solid support for continuing the implementation of a more proactive fiscal policy, with investors showing active and enthusiastic subscription. Furthermore, the issuance of this year's ultra-long special treasury bonds commenced in April and is scheduled for completion by October.

Regarding new local government special bonds, a total of 1.1599 trillion yuan was issued nationwide in the first quarter, a significant increase of 20.8% year-on-year. These funds are primarily used for project construction in key areas such as social services, transportation infrastructure, affordable housing projects, and urban renewal, as well as for replenishing government-managed fund resources and supporting the clearance of government arrears to enterprises, Qu Fuguo said. For special bonds designated to replace existing hidden debt, a total of 960.4 billion yuan was issued nationwide in the first quarter, completing 48% of the annual quota of 2 trillion yuan. Funds totaling 590.4 billion yuan have been allocated, providing substantial support for local governments to replace existing hidden debt.

Multiple fiscal policies focused on stimulating domestic demand. Various fiscal measures were implemented in the first quarter to support the development of a strong domestic market, including a package of policies for fiscal-financial coordination to boost domestic demand and pilot programs for lottery-linked invoices. In the first quarter, newly issued loans to small and micro enterprises, equipment renewal loans, loans to service industry entities, and personal consumption loans collectively exceeded 8.8 trillion yuan, a year-on-year increase of 4.2%. New loans to service industry entities surpassed 3.1 trillion yuan, up 6.2%, while new personal consumption loans approached 5.4 trillion yuan, growing by 2.5%. Li Nan, Deputy Director of the Financial Department of the Ministry of Finance, stated that based on first-quarter implementation, the overall progress of the fiscal-financial coordination package for stimulating domestic demand is in line with expectations, and the policy effects are gradually materializing, having benefited a cumulative total of 2.71 million business entities and 54.19 million resident consumers.

Simultaneously, focusing on supporting consumption revitalization, arrangements were made this year to allocate 250 billion yuan from ultra-long special treasury bonds to support the replacement of consumer goods, with optimized support scope, subsidy standards, and implementation mechanisms. Wu Gai, Deputy Director of the Economic Construction Department of the Ministry of Finance, mentioned that the Ministry of Finance has already allocated a total of 125 billion yuan in ultra-long special treasury bond funds in two batches. Fiscal resources have also actively supported the pilot program for lottery-linked invoices. As of last week, 5 billion yuan in prizes had been distributed across 50 pilot cities, driving approximately 160 billion yuan in sales in related sectors, with 410 million cumulative participants and 170 million winners.

Additionally, the Ministry of Finance, in collaboration with the Ministry of Commerce, is further promoting two pilot initiatives: one focused on new forms, models, and scenarios of consumption, and the other on building an internationalized consumption environment. The next step will involve working with relevant departments to ensure policy implementation, strengthen fund supervision, better foster a consumption-friendly atmosphere, unleash consumption potential, and promote the qualitative expansion of consumption.