May 18, 2009 (China Knowledge) - China's fiscal revenue declined 9.9% year on year to RMB 2.05 trillion in the period from January to April, according to China's Ministry of Finance (MOF), the official Xinhua News reported.
The MOF said on Thursday that fiscal revenue fell 13.6% year on year to RMB 589.72 billion in April.
Fiscal revenue includes taxes as well as administrative fees and other government income, such as fines and income from government-owned assets.
Income from businesses declined amid the economic slowdown. Windfall taxes from the oil industry posted a significant drop of 98.9% from a year earlier, according to the MOF.
The ministry also said the government's income decreased partly due to tax cuts and rebates implemented as part of the national government's plans to China's economy and maintain its growth. Combined with increased spending, the fall in revenue means China will face a large budget deficit this year, the ministry admitted.
Fiscal revenue rose 19.5% to hit RMB 6.13 trillion in 2008.