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          Fiscal revenue growth slows to 10.6% in Nov

          Updated: 2011-12-12 06:47

          (Xinhua)

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          BEIJING - China's fiscal revenues rose 10.6 percent year-on-year in November, a slower growth from October as the economy downshifted, according to official data released Sunday.

          The slowdown was caused by a moderation of the economic growth, higher exemption threshold for personal income taxes, declining car and property purchases and increasing export tax rebates, the Ministry of Finance said in a statement.

          The pace of growth in November decelerated from 16.9 percent in October, 17.3 percent in September and 34.3 percent in August.

          The revenues in November reached 645.73 billion yuan ($101.85 billion), with 558.21 billion yuan collected from taxes, up 2.7 percent year-on-year, said the ministry.

          Value-added tax revenue climbed 2.9 percent year-on-year, a weaker growth than 7.6 percent in October and 17.5 percent in September.

          Corporate income tax revenue slumped 20.6 percent year-on-year while personal income tax revenue dipped 8.2 percent, after the country raised the monthly exemption threshold for personal income taxes from 2,000 yuan to 3,500 yuan starting in September.

          Revenue from property sales taxes dropped 6.5 percent year-on-year in November.

          China's fiscal expenditure increased 7.5 percent year-on-year to 1.14 trillion yuan in November, said the ministry.

          In the first 11 months of the year, China's fiscal revenues rose 26.8 percent year-on-year to top 9.73 trillion yuan while its fiscal expenditure went up 24.3 percent to 8.9 trillion yuan, it said.

          China will maintain its proactive fiscal policy next year, according to a statement released after a meeting of the Political Bureau of the Communist Party of China Central Committee on Friday.

          Xia Bin, a member of the monetary policy committee of the People's Bank of China, or the central bank. said China still has room to pursue a proactive fiscal policy, given the country's deficit conditions.

          The government budgeted a fiscal deficit of 900 billion yuan for 2011, down from 950 billion yuan in 2009 budget and 1.05 trillion yuan in 2010 budget.

          Fiscal policies play a key role in economic restructuring, which is crucial for sustaining the country's growth, said Xia.

          He urged reforming the fiscal spending structure to better support strategic industries, small businesses and sectors like social security, health care and education that can help boost domestic consumption.

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