(Yicai) April 18 -- Slower economic growth and a sluggish real estate market are still exerting pressure on fiscal revenue growth for local governments in China, according to recently released figures, constraining any public spending increases.

The eastern powerhouse of Jiangsu province had a 0.8 percent gain in its general public budget revenue to CNY313.2 billion (USD43.3 billion) in the March quarter from a year ago, slowing from 4 percent in the January to February period. Yunnan province’s three-month GPBR rose 3.5 percent to CNY60 billion (USD8.3 billion), breaking from 12.4 percent in the first two months of the year.

Most of this revenue is raised through taxation, an important economic indicator. For example, Jiangsu recorded a 6.7 percent decline in tax income in the first quarter, and that from value-added tax, the main type, slumped 14.7 percent.

Some regions posted first-quarter declines in GPBR. Jiangxi province had CNY99.8 billion, down 3.6 percent from a year ago. While others saw increases, including Hunan province, whose coffers swelled 4.3 percent to CNY96.2 billion, up from 2.6 percent in the first two months. Gansu province’s climbed 6.9 percent to CNY29.2 billion, up from 6.9percent in January-February.

Besides the GPBR, China’s regions also report government fund revenue, most of which comes from the transfer of land use rights. The first three months of this year were sluggish in that regard amid the ongoing property market downturn.

For example, Jiangxi's revenues from government-managed funds, which include sales of lottery tickets and car purchase tax, totaled CNY25.2 billion, down 13 percent year on year. Of that, income from the sale of land use rights tallied CNY18.7 billion, down 22 percent, accelerating the pace of decline.

Yunnan added only 0.3 percent to its fund income to CNY11.3 billion, while land transfers made up almost 66 percent of the total despite a drop in this income last month.

Slowing growth affected local governments’ public spending in the first quarter. Jiangsu increased its general public budget expenditure by just 0.1 percent, while Yunnan raised it by 2.2 percent. Jiangxi cut spending by 0.9 percent.

Editors: Tang Shihua, Emmi Laine