# Fiscal Policy
Latest news and articles about Fiscal Policy
Total: 20 articles found
China’s Fiscal Paradox: Equity Trading Surges While Land-Based Revenue Crumbles
China's fiscal data from early 2026 highlights a significant shift as stock trading tax revenue nearly doubled while land-related revenue plummeted by nearly 30 percent. This divergence underscores the ongoing struggle to pivot from a real estate-driven growth model toward a more diversified, capital-market-oriented economy.
China’s Digital Dragnet: Plugging the Billion-Dollar Leak at the Pump
China is mandating real-time digital invoicing at all gas stations starting November 1 to curb widespread tax evasion. This technological upgrade is a critical precursor to shifting consumption tax collection to the retail level, potentially bolstering local government revenues.
China’s Fiscal Squeeze: A-Share Giants Hit by Wave of Retroactive Tax Demands
Multiple Chinese listed companies have been forced to pay hundreds of millions in back taxes and late fees following a wave of 'self-inspections.' This aggressive enforcement highlights the fiscal strain on local governments and poses a significant risk to corporate profitability in the A-share market.
The End of the Free Ride: China Realigns its Tax Code for the EV Era
China is restructuring its tax regime for electric vehicles as the industry transitions from a subsidized infant sector to a dominant market force. To address shrinking road maintenance budgets and the increased wear-and-tear caused by heavy EV batteries, Beijing is beginning to phase out tax exemptions.
Guns vs. Gohan: Japan’s Defense Ambitions Collide with Economic Reality
Japan's aggressive increase in defense spending is meeting significant domestic resistance as the public prioritizes economic relief over military expansion. This fiscal pivot, potentially reaching 3.5% of GDP, risks destabilizing the national economy and the ruling LDP's political standing amidst a demographic crisis.
China’s Fiscal Pivot: Tax Windfalls Mask a Deepening Property Drag
China's broad fiscal revenue returned to growth in early 2026 as surging tax receipts offset a catastrophic 27% decline in land sales. The data reveals a strategic shift in Beijing's spending priorities, moving away from property-led growth toward social welfare and technology-focused investments.
China’s Fiscal Balancing Act: Revenue Gains Mask a Shift Toward Social Welfare
China's broad fiscal revenue grew by 0.4% in the first four months of 2024, marking its first move into positive territory this year. The growth was driven by the removal of tax incentives and a recovery in industrial prices, even as the government pivots its spending from infrastructure toward social welfare.
China’s Fiscal Divergence: Tax Revenues Rise as Property Drags on the Treasury
China's tax revenue grew 3.9% in the first four months of the year, driven by a recovery in industrial prices and active capital markets. However, a 27.2% collapse in land sale revenues highlights the persistent drag of the property crisis on local government finances, forcing a shift toward social welfare spending.
The Geopolitical Domino: Why a US-Iran Conflict Threatens to Unleash a 'Serial Shock' on the American Economy
As tensions between the US and Iran escalate in May 2026, economists warn of a 'serial shock' to the American economy driven by surging energy prices and fiscal strain. This potential conflict threatens to disrupt supply chains and trigger market volatility, complicating the US economic outlook.
Fiscal Reality Checks Lima's Ambition: Peru Rejects F-16 Fighter Jet Acquisition
President Balcázar has officially rejected the purchase of U.S. F-16 fighter jets, citing the severe fiscal burden they would place on the national budget. The decision defers the modernization of Peru's air fleet to the next administration, prioritizing domestic spending over high-cost defense acquisitions.
China’s Fiscal Recovery Stumbles Forward as Industrial Stabilisation Drives Modest Tax Gains
China reported a 2.2% increase in Q1 tax revenue, totaling 4.85 trillion yuan, led by a 4.9% rise in VAT. The figures suggest a stabilization in industrial activity but highlight a slow overall fiscal recovery compared to broader economic targets.
Beijing Imposes Lifetime Liability to Curb Wasteful State Investment and Local Debt
The Chinese State Council has introduced a landmark reform to the investment approval system, mandating lifetime accountability for officials to prevent wasteful spending and local debt. The guidelines aim to tighten oversight on state-owned enterprises while streamlining bureaucracy to attract private investment in infrastructure.