China fiscal revenue remains low, spending quickens

The finance ministry last month urged local authorities to advance fiscal and tax reforms as it worries that slowing revenue would have negatively impact on achieving the 2015 development target.

The ministry asked local authorities to deepen fiscal reform, cut red tape and spend unused fiscal funds.

They were also told to speed up local government debt issuance, improve management of fiscal funds and accelerate expenditure.

Premier Li Keqiang, speaking at the opening of the annual parliamentary session, stressed that a proactive fiscal policy and prudent monetary policy would continue in 2015 in a bid to hit the growth target of around 7 percent for the year.

China plans to raise its budget deficit to 2.3 percent of its GDP for 2015, up from last year's target of 2.1 percent.