![]() In addition to laying out spending figures for 2023, new budget data provides the closest look yet at spending in the 2022 general public budget. Actual defense spending is estimated to be considerably higher. Additionally, it is important to note that China’s official defense figures do not capture total spending on the military. military spending, China boasts the world’s second largest military budget and continues to widen its lead over other countries. Department of Defense’s 2023 budget rose 9.5 percent in fiscal year 2023, bringing American spending to $797.7 billion. China’s 2023 defense budget was set at RMB 1.55 trillion ($224.8 billion), a nominal 7.2 percent increase from the 2022 budget of RMB 1.45 trillion ($229.6 billion). This continues a recent trend that has seen nominal yearly percentage increases in the upper single digits.Įven with steady increases, China still spends far less on defense than the United States. These figures only provide part of the full picture since the lion’s share of spending in most of these categories takes place at the local level.Ī notable exception to this is the defense budget, since virtually all spending on the military takes place at the central level, not the local level. It only provides a limited breakdown of a handful of categories at the central level, including general public services, foreign affairs, defense, public security, education, science and technology, stockpiling of grains and other materials, and interest on debt payments. The 2023 budget does not include a detailed breakdown of spending across categories at the national level. Expenditure is set at RMB 27.5 trillion ($4 trillion), a 5.6 percent increase, leaving China with an official projected deficit of nearly RMB 3.9 trillion ($564.1 billion), up 15.1 percent from 2022. The newly released budget projects general public budget revenue of RMB 23.6 trillion ($3.4 trillion) in 2023, a 3.5 percent increase from the previous year. It includes revenue and spending by the central government and local governments, as well as transfers from the central government to local governments. Spending on health and sanitation rose 17.8 percent in 2022-more than twice the growth rate of any other category.Īt the heart of China’s government budget is the general public budget. China’s zero-Covid policies weighed on Chinese coffers.New data on China’s 2022 general public budget shows the government brought in less revenue than previously projected, largely due to declining land sales, which are a critical source of income for local governments.China’s official 2023 deficit is pegged at about 3 percent of Chinese GDP, but the full deficit-which accounts for other spending areas-is much larger, at around 7.4 percent of GDP.China’s 2023 general public budget projects revenue of RMB 23.6 trillion ($3.4 trillion) and sets spending at RMB 27.5 trillion ($4 trillion), resulting in an official deficit of nearly RMB 3.9 trillion ($564.1 billion).This ChinaPower feature untangles the details behind China’s government budget. Yet these budgets can be difficult to parse, and the topline figures only tell part of the story. Beijing also released new data on spending in 2022, which provides valuable insights into the country’s evolving spending priorities and its overall fiscal situation. ![]() On March 13, 2023, at the annual convening of the government’s “two sessions,” China finalized a new government budget that will play a major role in shaping the trajectory of the world’s second-largest economy. ![]()
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