China’s fiscal expenditure rose 3.6% year-on-year to CNY 4.67 trillion in the first two months of 2026, according to Ministry of Finance data released Thursday. Central government spending increased 4.5%, while local government outlays grew 3.5%. Spending on social security and employment climbed 8.6% to CNY 927.9 billion, and health expenditure surged 17.3% to CNY 411.9 billion.
Over the same period, fiscal revenue inched up 0.7% to nearly CNY 4.42 trillion. Central government revenue declined 1.7% to around CNY 1.92 trillion, whereas local government revenue rose 2.6% to CNY 2.5 trillion. Tax revenue was essentially flat at CNY 3.64 trillion, up just 0.1%, while non-tax revenue increased 3.4% to CNY 776.1 billion, underscoring the limited momentum in core fiscal inflows.