Chinese government spending jumps over 25 per cent amid efforts to revive slowing economy

China’s fiscal spending jumped 25.9 per cent in August from a year earlier as Beijing tries to re-energise flagging economic growth.

That was biggest rise since April, when spending leapt 33 per cent, data from the Ministry of Finance showed on Tuesday.

For the first eight months of the year, fiscal expenditure is now up 14.8 per cent, over 10 trillion yuan (HK$12.1 trillion) compared with the same period last year.

READ MORE: China's factory output and fixed-asset investment growth in August fail to meet forecasts

With traditional monetary responses such as interest rate cuts having less impact on economic activity than in the past, China is trying to increase fiscal stimulus to both shore up short-term growth and defend against deflationary pressures.

Spending on education rose 15.8 per cent from January to August; healthcare 19.5 per cent; energy conversation and clean technology 22.7 per cent; and social security and employment 21.7 per cent.

However, China’s clunky budget process and at times strained relationships with some local government officials appear to be still complicating the transmission process in terms of turning higher spending into actual activity.