Chinese govt revenue growth slows

BEIJING -- Government revenues in the first seven months of the year increased 11.6 percent year-on-year, although the growth rate was down 18.9 percent compared to last year, Finance Minister Xie Xuren said Wednesday.

National revenues during the period totaled 7.44 trillion yuan ($1.17 trillion), including 3.738 trillion yuan collected by the central government and 3.708 trillion yuan collected by local governments, Xie said while delivering a budget report at a standing committee meeting of the National People's Congress, China's legislature.

Xie said the decreasing revenue growth was a "comprehensive reflection" of slowing economic growth, declining corporate profits, an easing consumer price index, structural tax cuts and other factors.

Xie said slower economic growth was evident in declines in major economic data, such as industrial added value, fixed-asset investment and total retail sales of consumer goods, which led to a significant slowdown in tax revenue growth.

Moveover, small increases in the consumer and producer price indices have affected revenues from taxes, Xie said.

Structural tax cuts were "relatively large" this year, as the government continued to employ them to aid in the adjustment of income distribution and the support of small- and micro-sized businesses, he said.