Record deficit in China

China hit a record 8.96 trillion deficit in 2022, with a 51 percent larger budget deficit than in 2021.

According to data released by the Ministry of Finance, China’s budget deficit reached a record level of 8.96 trillion yuan in 2022. In 2022, the deficit was 51 percent higher than the budget deficit in 2021.

In 2022, the deficit exceeded the budget deficit of 2020, which was the year of the epidemic, by 3 percent.

In 2022, general public revenue increased 0.6 percent to 20.4 trillion yuan ($3.02 trillion).

The narrowing of budget revenues played an important role in the budget deficit due to the epidemic measures and the effects of what happened in the real estate department.

While the income from the taxes paid in the purchase and sale of real estate decreased by 22 percent compared to the previous year, the income from the sale of land use rights decreased by 23.3 percent compared to the previous year.

General public spending, on the other hand, increased 6.1 percent year on year to 26.1 trillion yuan ($3.87 trillion).