China nets $1.26 trillion rev in 2010; economy overtakes Japan

China Thursday said its total fiscal revenue grew by 21.3 percent to net 8.31 trillion yuan (USD 1.26 trillion) last year, while its GDP grew by an impressive 10.3 percent making the Chinese economy bigger than that of Japan.

Beijing: China Thursday said its total fiscal revenue grew by 21.3 percent to net 8.31 trillion yuan (USD 1.26 trillion) last year, while its GDP grew by an impressive 10.3 percent making the Chinese economy bigger than that of Japan.
    
The increase in revenue is due to relatively fast economic growth, surging purchases and consumption tax, driven by growing vehicle sales, Chinese Finance Ministry said in a statement Thursday.
    
Various figures put China's scale of economy bigger than Japan's last year, state-run People's Daily said.
    
It also claimed that inflation has tapered to 4.6 percent last month from the 28 month-high of 5.1 percent November last.
    
Analysts say that the new figures showcasing China's economic might add more bargaining power to its President Hu Jintao, who is currently on a fence mending visit to the US.
    
According to a media report Japan's 2010 gross domestic product data won't be released until February, but that it's almost certain to be lower than that China's.
    
China witnessed a buoyancy in its revenue last year as the central fiscal revenue topped 4.25 trillion yuan, up 18.3 percent from the previous year, while local governments collected 4.06 trillion yuan, up 24.6 percent, official Xinhua news agency quoted the Ministry statement as saying.
    
Also, tax revenues rose 23 percent last year from 2009 to 7.32 trillion yuan (USD 1.2 trillion).
    
Meanwhile, fiscal expenditure nationwide grew 17.4 percent to nearly 8.96 trillion yuan in 2010.
    
The double-digit economic growth last year marks the fastest annual expansion since the onset of the global financial crisis in 2008.
    
Major propellers behind the rapid growth are proactive fiscal policy and bank loans that inspire a boom in infrastructure construction all through the country, rising domestic consumption by middle class with more incomes, and a boost in Chinese exports.
    
However, UBS in its latest forecast said Chinese economy is set to slow down to below nine percent this year on concerns of stepped up measures to tackle excessive liquidity and inflation.
    
GDP growth will fall to 9 percent from an estimated 10 percent in 2010, while the inflation, will shoot up to as much as 6 percent in the first half of the year from the present 5.1 percent before cooling in the second half and will average 4.3 percent for the full year, Wang Tao, UBS's China economist Wednesday told the official media here.

PTI

Tags:

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close