May financial data interpretation: Fiscal expenditure maintains strength to ensure economic growth.

Report Summary Event: On June 20, the Ministry of Finance released the financial situation for January-May. From January to May, the national general public budget revenue was 9662.3 billion Yuan, a decrease of 0.3% year-on-year; the general public budget expenditure was 11295.3 billion Yuan, an increase of 4.2% year-on-year. Summary: In May, the growth rates of both revenue and expenditure of public finances slowed down, but the overall trend remained positive. From January to May, the national general public budget revenue was 9662.3 billion Yuan, a decrease of 0.3% year-on-year, with the decrease narrowing compared to the previous month; the general public budget expenditure was 11295.3 billion Yuan, an increase of 4.2% year-on-year, with a slightly lower growth rate. In May, the year-on-year growth of public finance revenue was 0.13%; expenditure increased by 2.63%, both showing a slight decline in growth rate. As for the deficit, the broad deficit continued to increase in May. From January to May this year, the actual deficit accumulated to 1633 billion Yuan, the highest in nearly five years, compared to 1144.7 billion Yuan in the same period last year, an increase of 488.3 billion Yuan. After considering government funds, the broad deficit for January-May this year was 3297.2 billion Yuan, compared to 2938 billion Yuan in the same period last year, an increase of 359.2 billion Yuan. Considering the pace of fiscal revenue and expenditure, the pace of fiscal revenue and expenditure from January to May this year remained stable overall. From January to May, public fiscal revenue completed 43.9% of the annual budget, an increase of 0.6 percentage points from the previous year. Public fiscal expenditure completed 38.0%, unchanged from last year, indicating stable fiscal revenue and expenditure. In terms of fiscal revenue structure, the cumulative growth rate of non-tax revenue from January to May slowed down, while the decrease in tax revenue growth rate narrowed, reducing the gap between tax and non-tax revenue growth rates. From January to May, non-tax revenue increased by 6.2%, with a slight decline in growth rate compared to the previous month; tax revenue decreased by 1.6%, with a slight narrowing from the previous month. In May, tax revenue increased by 0.6% year-on-year, while non-tax revenue decreased by 2.2%. The trend of major tax revenues continued, with a narrowing of the year-on-year decline in corporate income tax, a continuous return to positive growth in enterprise value-added tax, indicating improved business operations, and a steady increase in personal income tax growth. From January to May, corporate income tax decreased by 2.5% year-on-year, a smaller decline compared to the previous month, while value-added tax increased by 2.4% year-on-year, a slight increase compared to the previous month. Personal income tax increased by 8.2% year-on-year, with a continuous increase in growth rate. In terms of major expenditure categories, central government expenditure increased significantly, with improvements in livelihood and infrastructure projects. In May, central government expenditure maintained a high growth rate, with a year-on-year increase of 11.04%, higher than the growth rate of local government expenditure by 10.1 percentage points. In specific sub-items, livelihood expenditures overall continued to grow, with a year-on-year growth of 20.15% in science and technology, a significant increase in growth rate; a year-on-year growth of 16.2% in culture, tourism, sports, and media, a significant improvement in growth rate compared to the previous month; a year-on-year growth of 11.1% in social security and employment, with a slight increase in growth rate compared to the previous month. In terms of infrastructure expenditures, environmental protection and energy conservation increased by 4.6% year-on-year, while transportation, urban and rural community development, and agriculture, forestry, and water affairs all showed a decline. National government fund budget expenditures increased significantly. From January to May, national government fund budget expenditures amounted to 3212.5 billion Yuan, an increase of 16% year-on-year. Looking at the central and local levels, central government fund budget expenditures were 993 billion Yuan, an increase of 64.4% year-on-year; local government fund budget expenditures were 3113.2 billion Yuan, an increase of 14.9% year-on-year. Risk Warning: Macroeconomic performance falling short of expectations, major fluctuations in overseas markets, historical experiences do not guarantee future outcomes. Text Source: This article is from the WeChat public account "Pursuing the Path of Value", GMTEight Editor: Wang Qiujia.