(Repeats to more subscribers)
* June fiscal expenditure up 26.1 pct y/y
* H1 spending on public housing surges 30.2 pct
* Healthcare & rural sector spending also grow fast
BEIJING, July 14 China's fiscal expenditure
surged 26.1 percent in June from a year earlier to 1.65 trillion
yuan ($265.84 billion), reflecting government efforts to speed
up spending to shore up the economy.
Spending growth accelerated from a rise of 24.6 percent in
Of the total 6.9 trillion yuan of government spending in the
first six months, money disbursed on public housing projects
grew the most, surging 30.2 percent from a year ago to 201.9
billion yuan, the finance ministry said on Monday.
Expenditure on medical and healthcare sectors rose 18.4
percent in the first half to 490.5 billion yuan, while spending
on rural-urban community projects grew 23.6 percent to 618
The finance ministry had earlier urged local governments to
quicken the pace of budget allocation to guarantee the
completion of key projects and lift the slowing
Recent data and activity surveys have pointed to some signs
of stabilisation in the economy as a raft of government stimulus
measures kick in, but many economists believe more policy
support still may be needed if Beijing wants to deliver on its
2014 economic growth target of around 7.5 percent.
"Data in June so far have looked relatively weaker compared
to past periods of rebound," HSBC said in a research report late
"This means downside risks to growth still cannot be
underestimated in the second half and policy makers should step
up their easing effort to sustain the recovery."
Monday's data also showed China's fiscal revenues rose 8.8
percent in June from a year ago to 1.3 trillion yuan, the
ministry said in a statement published on its website,
The June reading of fiscal income is a touch higher than an
increase of 7.2 percent in May, though the finance ministry
warned that the slowing broader economy and tax cuts for
selected industries could continue to weigh on fiscal revenues
in the second half of this year.
The government reports second-quarter gross domestic product
Aided by stimulus measures, China's economy probably
steadied in the second quarter with annual growth holding firm
at 7.4 percent, a Reuters poll showed, suggesting that a
recovery is taking hold.
($1 = 6.2067 yuan)
(Reporting by Aileen Wang and Koh Gui Qing; Editing by Kim