Government finances in China - statistics & facts
For a long time, China’s government budget grew by double digits year on year, but this situation has changed gradually over the last decade. Revenue growth has fallen below an average of five percent annually since 2019. At the same time, deficits increased and were estimated to range at around seven percent of the GDP in both 2024 and 2025.
The largest single item in the Chinese government budget for many consecutive years has been education. In contrast, welfare spending is considerably lower than in Western countries. Spending on social security and employment only accounted for around 14.5 percent of the total budget in 2023.
In recent years, revenues were increasingly not on par with expenditures. While budget deficits have been widening since 2011, total government debt is mounting up and reached 84 percent in 2023, more than double from 37 percent in 2013. Compared to developed economies, this is still a moderate level.
However, the situation is aggravated by large amounts of debt held by state-owned companies, which have often taken up debt under the supervision of local governments. Total debt of the non-financial sector in China reached more than 300 percent in 2023. This is a comparatively high level and was only surpassed by a few highly indebted jurisdictions such as Japan and Hong Kong.
China’s fiscal budget
China is a country with a low to moderate government spending ratio. Total government expenditure amounted to around 33 percent of the GDP in 2023, while this amounted to about 34 percent in the United States. For other Western countries, such as the United Kingdom, Germany, or France, this surpassed 40 or even 50 percent. Among Asian countries, however, government spending ratios are considerably lower, and China is ranging in a medium position.The largest single item in the Chinese government budget for many consecutive years has been education. In contrast, welfare spending is considerably lower than in Western countries. Spending on social security and employment only accounted for around 14.5 percent of the total budget in 2023.
In recent years, revenues were increasingly not on par with expenditures. While budget deficits have been widening since 2011, total government debt is mounting up and reached 84 percent in 2023, more than double from 37 percent in 2013. Compared to developed economies, this is still a moderate level.
However, the situation is aggravated by large amounts of debt held by state-owned companies, which have often taken up debt under the supervision of local governments. Total debt of the non-financial sector in China reached more than 300 percent in 2023. This is a comparatively high level and was only surpassed by a few highly indebted jurisdictions such as Japan and Hong Kong.
