Translated by Zuo Maohong
Original article: [Chinese]

Chinese officials have estimated that China's state revenue growth in 2009 would likely slip to a single digit after years of robust growth.

The projection was disclosed at the ongoing National Fiscal Work Conference chaired by Finance Minister Xie Xuren.

The projected revenue for 2009 would be 6,572 billion yuan, 8% up compared to 2008. This would be the first time in over a decade that the state revenue growth went below double digits. Last year, the state revenue growth was 19% higher than 2007.

The projected contraction in state revenue growth was attributed to the government cutting and aborting 13 types of taxes last year. For instance, the reform of value-added tax (VAT) alone led to a reduction of 120 billion yuan in tax revenue.

Part of these preferential policies would continue into this year. In addition, more adjustments to VAT, export tax rebate and consumption tax to stimulate the slowing down economy have taken effect since Jan 1, which would greatly impact the state revenue growth this year.

The last quarter of 2008 had witnessed negative growth in tax revenue following a global and domestic economic downturn. The whole year's revenue was estimated to be over six trillion yuan.

While state income was shrinking, fiscal spending would climb as the government launched a series of measures to boost investments and consumptions. 

To carry out the four trillion yuan stimulus package, the central government planned to spend 1,180 billion yuan within two years. A hundred billion yuan already disbursed, the government would allocate 700 billion yuan on fixed assets investment this year.

Among the strategies to balance reduced revenue and increased spending, the Ministry of Finance planned to extend more taxes on resource-based products, and to charge consumption tax on products deemed as seriously polluting and led to energy depletion.