China’s broad public expenditure fell 2.5% y/y last month, the steepest drop
since October, while fiscal revenue rose 3.4%, the fastest since July, leaving a
deficit above 1.5 trillion yuan. First-quarter growth beat expectations, driven
by manufacturing. The stronger outlook and a lower 4.5%–5% growth target reduce
urgency for additional stimulus, as policymakers remain cautious amid rising
debt and weakening government income.
