USD3.19 Trillion: China’s Fiscal Revenue in 2021

[Stranagor]

(Yicai Global) Jan.25 -- China’s fiscal revenue was 10.7 percent higher last year than in 2020, mainly due to the country’s economic recovery and higher factory gate prices, Vice Finance Minister Xu Hongcai said today.

Fiscal revenue, the money the government collected through taxes and non-taxes, was CNY20.25 trillion (USD3.19 trillion) in the 12 months ended Dec. 31, Xu said at a press conference.

The government’s income rose against the backdrop of an economy that expanded at an 8.1 percent clip to CNY114.37 trillion (USD18.02 trillion), driven by robust exports, and also an 8.1 percent jump in the producer price index as the cost of raw materials and energy surged.

Central government revenue was CNY9.15 trillion (USD1.45 trillion), up 10.5 percent, while local government income was CNY11.1 trillion, a 10.9 percent gain, Xu said.

Fiscal expenditure edged up 0.3 percent to CNY24.63 trillion. CNY3.76 trillion was spent on education, a 3.5 percent increase; CNY3.37 trillion on social security and employment, a 3.4 percent rise; and CNY1.92 trillion on healthcare, which was about the same as in 2020.

Tax cuts exceeded CNY1 trillion (USD158 billion), adding to the CNY7.6 trillion of reductions made during the 13th Five-Year Plan that covered 2016 to 2020.

There will be further tax cuts this year, Xu said, adding that the government aims to continue easing the pressure on small and micro businesses. Efforts to curb tax evasion, fraud and unreasonable charges will also continue.

China’s Fiscal Revenue Jumps 10.7% to USD3.19 Trillion in 2021

www.yicaiglobal.com

 

[xuxu1457]

2021 revenues totalled 20.25 trillion yuan ($3.20 trillion), trailing expenditures of 24.63 trillion yuan（3.88trillion $）, which grew 0.3%, Xu said.
China defence budget 210billion $， only 5.5% of China trailing expenditures ，1.18% of 2021 GDP

 

[Stranagor]

2021 revenues totalled 20.25 trillion yuan ($3.20 trillion), trailing expenditures of 24.63 trillion yuan（3.88trillion $）, which grew 0.3%, Xu said.
China defence budget 210billion $， only 5.5% of China trailing expenditures ，1.18% of 2021 GDP

Looks like more spent on healthcare, social security and education. Combined, near 8 trillion RMB.

A good social state.

CNY3.76 trillion was spent on education, a 3.5 percent increase; CNY3.37 trillion on social security and employment, a 3.4 percent rise; and CNY1.92 trillion on healthcare

 

[letsrock]

Interesting figures. china gdp is about 75% of us gdp. but chinese govt revenues are less than half of us govt revenues. it shows china is a low tax government.

 

[Stranagor]

Interesting figures. china gdp is about 75% of us gdp. but chinese govt revenues are less than half of us govt revenues. it shows china is a low tax government.

And it seems to go much lower. Those low and mid-income pay less and less. Bureaucratic fees are cut, too.

BEIJING, Jan. 26 (Xinhua) -- China cut about 1.1 trillion yuan (173.9 billion U.S. dollars) of taxes and fees in 2021, the top tax authority said on Wednesday. Enditem

China cuts 1.1 trln yuan of taxes, fees - China.org.cn

 

[xuxu1457]

Interesting figures. china gdp is about 75% of us gdp. but chinese govt revenues are less than half of us govt revenues. it shows china is a low tax government.

The United States has a revenue of $4.05 trillion in 2021, but a fiscal expenditure of $6.82 trillion and a deficit of $2.8 trillion. China's fiscal revenue is 3.2 trillion US dollars, its fiscal expenditure is 3.88 trillion US dollars, and its fiscal deficit is 680 billion US dollars. The proportion of fiscal revenue is about the same, but the United States will have to spend more money and borrow more debt in 2021.

 

[vi-va]

Interesting figures. china gdp is about 75% of us gdp. but chinese govt revenues are less than half of us govt revenues. it shows china is a low tax government.

In 2021, US government collected $4.05 trillion in revenue.

TOTAL REVENUES​

The federal government collected revenues of $3.5 trillion in 2019—equal to about 16.3 percent of gross domestic product (GDP) (figure 2). Over the past 50 years, federal revenue has averaged 17.4 percent of GDP, ranging from 20.0 percent (in 2000) to 14.6 percent (most recently in 2009 and 2010).

 

[MH.Yang]

Interesting figures. china gdp is about 75% of us gdp. but chinese govt revenues are less than half of us govt revenues. it shows china is a low tax government.

The fiscal revenue of the USA is $4 trillion, and China's fiscal revenue exceeds 75% of that of the USA. Secondly, there are some problems that will affect China's fiscal revenue:
1. American tax includes payroll tax, while Chinese fiscal revenue does not, but is directly included in social security expenses.
2. The threshold of personal income tax in China is high, while the per capita income is lower than that in the United States. Only 90 million people in China need to pay taxes, and family income tax is the main tax in the United States.
3. Small businesses and most shops are almost duty-free.
4. The US tax bureau is much more efficient than the Chinese tax bureau. China often reports that some stars have evaded taxes for more than 10 years. To be honest, I think only the US tax bureau is more efficient than China.

 

[letsrock]

The fiscal revenue of the USA is $4 trillion, and China's fiscal revenue exceeds 75% of that of the USA. Secondly, there are some problems that will affect China's fiscal revenue:
1. American tax includes payroll tax, while Chinese fiscal revenue does not, but is directly included in social security expenses.
2. The threshold of personal income tax in China is high, while the per capita income is lower than that in the United States. Only 90 million people in China need to pay taxes, and family income tax is the main tax in the United States.
3. Small businesses and most shops are almost duty-free.
4. The US tax bureau is much more efficient than the Chinese tax bureau. China often reports that some stars have evaded taxes for more than 10 years.

Interesting figures and i agree that chinese is a low tax state however one correction. Fiscal revenue of US federal plus states is close to 8 trillion. I think china fiscal revenue of 3 trillion includes both chinese govt and provinces govt.
Do you know how much is chinese payroll tax?

another factor could be the GDP contribution of exports in china which is usually never taxed.

View attachment 811173
The United States has a revenue of $4.05 trillion in 2021, but a fiscal expenditure of $6.82 trillion and a deficit of $2.8 trillion. China's fiscal revenue is 3.2 trillion US dollars, its fiscal expenditure is 3.88 trillion US dollars, and its fiscal deficit is 680 billion US dollars. The proportion of fiscal revenue is about the same, but the United States will have to spend more money and borrow more debt in 2021.

As i said before US federal plus states equals nearly 8 trillion USD. Apples to apples.

 

[MH.Yang]

Interesting figures and i agree that chinese is a low tax state however one correction. Fiscal revenue of US federal plus states is close to 8 trillion. I think china fiscal revenue of 3 trillion includes both chinese govt and provinces govt.
Do you know how much is chinese payroll tax?

another factor could be the GDP contribution of exports in china which is usually never taxed.


As i said before US federal plus states equals nearly 8 trillion USD. Apples to apples.

The payroll tax in the USA is equivalent to China's personal income tax + endowment insurance(equivalent to social security tax in USA) + medical insurance(equivalent to Medicare tax in USA).
Only 90 million people need to pay personal income tax, and the tax rate is 3%. Endowment insurance is 21% of the salary, but employees only need to pay 8% of it. Medical insurance is 9% of the salary, but employees themselves only need to pay 2%.
Endowment insurance and medical insurance are not included in the fiscal revenue, but into the social security account. China's social security account undertakes the pension insurance, medical insurance, unemployment compensation, industrial injury compensation, maternity compensation and house purchase compensation of Chinese people. 99.9% of Chinese people have endowment insurance and medical insurance.
Of course, there are recurrent deficits in the social security account. The deficit of the social security account is filled by the profits of three state-owned enterprises: PetroChina, Sinopec and CNOOC.

 

[Shotgunner51]

I think china fiscal revenue of 3 trillion includes both chinese govt and provinces govt.

Yes, that's central plus regional all included. So it's more a fair apple-to-apple comparison to put China Central government budget vs US Federal government budget. Hence fiscal revenue becomes CN¥9.15 trillion (~US$1.45 trillion) vs US$4.05 trillion.

 

[redtom]

The US does have a higher tax burden than China, which partly explains why the US, with a PER capita GDP of $60,000, is far less than six times the Chinese standard of living.

China consumes more food per capita than even Japan and South Korea, and even if Chinese incomes continue to rise, spending on food will not increase significantly. The extra money will be spent on other items, most likely sports, travel, entertainment, technology and luxury goods.

 

[vi-va]

Interesting figures and i agree that chinese is a low tax state however one correction. Fiscal revenue of US federal plus states is close to 8 trillion. I think china fiscal revenue of 3 trillion includes both chinese govt and provinces govt.
Do you know how much is chinese payroll tax?

another factor could be the GDP contribution of exports in china which is usually never taxed.


As i said before US federal plus states equals nearly 8 trillion USD. Apples to apples.

Fiscal revenue of US federal plus states is close to 8 trillion

Where did you get 8 trillion? Wrong figure

 

[KrimesKaster]

Interesting figures. china gdp is about 75% of us gdp. but chinese govt revenues are less than half of us govt revenues. it shows china is a low tax government.

Its much simpler. There are about 4 times Chinese than Americans. Same GDP is spread thinly, so tax percentage remain lower due to progressive tax regimes. Lower income individual pay less portion of income in tax. Similarly low income businesses pay lower taxes or none. China is bigger and poorer compared to USA.

 

[Mista]

Also to note that for property, the US mainly collects property tax while China mainly collects land sales revenue. Similar in 'low tax' HK.