China's fiscal revenue growth to slow

China's fiscal revenue growth is expected to slow down in the later period of the year, Finance Minister Xie Xuren has said. Policies such as higher exemption threshold for individual income tax and tax breaks for small-sized firms with thin profits will reduce fiscal revenue, according to a statement posted on the ministry's website on Saturday, citing Xie's address at a meeting held on Friday. Fiscal revenue rose fast in the first half of the year as the country's economy was running generally well toward the direction of macro controls, he said. Government data showed fiscal revenue rose 34 percent year-on-year in May, faster than 27.2 percent in April and 26.7 percent in March. However, the economic development faced complicated situation both at home and abroad, with many unstable and uncertain factors, he added. Also at the meeting, he asked local authorities to take water projects as a major sector for fiscal expenditure and increase investment. He called for government spending to take the leading role and encouraged social capital into the sector to ensure that annual investment in water projects double the level for 2010 in the following 10 years. Further, he said low-income housing, education and social securities should be the priorities for fiscal spending in 2012. Governments should strictly control expenditure on vehicle purchases and maintenance, overseas trips and official receptions, he said, asking authorities to publicize budgets to improve transparency.