Source: Bloomberg

China's overall fiscal deficit this year has set a record, highlighting the damage to the economic and government finances that have been revoked not long ago, and the downturn of the downturn in the property market.

Bloomberg According to data calculations of the Ministry of Finance of China, from January to November, the overall fiscal deficit was 7.75 trillion yuan (RMB, the same below), including the national general public budget and national government fund budget revenue and expenditure.

The data reached more than twice the same period last year, and higher than 2020. At that time, the economy was impacted by the first round of epidemic, and the growth rate became the slowest in decades.

The expansion of

deficit highlights the serious economic situation at the end of November. Soon after, the Chinese government has essentially revoked strict epidemic prevention policies.

As a core sealing, testing, and isolation regulations for clearing the zero policy, consumers and corporate expenditures are under pressure, and the economy is on the verge of shrinking the edge of the economy in the second quarter.The surge in the number of infections this quarter has caused retail sales in October and November.

Epidemic prevention policies are costly, and it is increasingly difficult to maintain.The huge inspection and isolation costs have overwhelmed local governments, and in the context of the lower real estate market, land transfer and tax revenue have fallen sharply.

As cases sweeping the country, the tax revenue and fiscal conditions of local governments are unlikely to improve immediately.Even if the detection and isolation expenses have decreased, as more people fall, medical expenses may jump.The real estate market does not show signs of improvement immediately, which may cause land transfer income to be limited.

In the first 11 months of this year, the national general public budget revenue was RMB 18.6 trillion, a decrease of 3%year -on -year, and the decrease was less than 4.5%as of October.Data from the Ministry of Finance showed that after deducting the retained tax refund factors, an increase of 6.1%.

In November, the land use right transfer revenue of governments in various local governments was 715 billion yuan, which was 552 billion yuan a month, but a year -on -year decrease of about 13%.Since the beginning of this year, land transfer revenue has recorded two digits of double digits per month.In addition, the deed tax revenue from January to November decreased by 23.8%year -on -year.

The general public budget expenditure nationwide in the first 11 months was 22.7 trillion yuan, an increase of 6.2%over the same period last year; from January to October, it increased by 6.4%.The national government fund budget expenditure increased by 5.5%over the same period last year, below 9.8%below January to October.

The article published by Liu Kun, the Minister of Finance of China Monday, said that it is expected that China's fiscal expenditure will reach 2.63 trillion yuan in 2022; in 2021, it is 24.6 trillion yuan.