BEIJING - GROWTH in China's fiscal revenue is expected to slow sharply this year as the global financial crisis continues to squeeze corporate profits, state media said on Monday.
'National fiscal revenue growth is expected to decline significantly (in 2009) while spending will continue to rise, making fiscal imbalance a prominent problem,' the Xinhua news agency said, citing Finance Minister Xie Xuren.
Speaking at the national finance work conference on Monday, he said the country's fiscal revenue exceeded six trillion yuan (S$1.3 trillion) in 2008, up 19 per cent year on year.
The growth was far below the 32.4 per cent recorded in 2007, as it started to weaken in the second half of last year due to falling corporate profits and tax cuts to cushion the impact of the global meltdown, according to Mr Xie.
This year will be 'a difficult fiscal year' as the downward trend is set to continue, he added.
The central government has said it would adopt an expansionary fiscal policy and easy monetary policy in 2009 to maintain fast growth amid the financial crisis.
It unveiled late last year a US$586 billion stimulus package to boost domestic demand, and more incentives are expected this year. -- AFP
