Bloomberg quoted the Ministry of Finance said China fiscal revenue growth slowed in the fourth quarter as the economic expansion moderated and inflation eased.

The ministry said in a statement that revenue in the final three months of 2011 gained 10%YoY resulting in a full year total of CNY 10.4 trillion and growth of 25%. Revenue expanded 27% in the first 11 months of the year. The ministry didn’t give single-month data for December.

The slower increase may pose challenges to government plans to cut taxes further after the economy expanded the least since mid-2009. China leaders may boost the role of fiscal measures in 2012 as persistent inflation concerns discourage a sharp loosening of monetary policy.

Ms Jing Ulrich chairman of global markets for JPMorgan Chase & Co said the scope remains considerable for the government to support domestic demand by boosting income growth and cutting taxes. At the same time, she said “China is unlikely to embark on aggressive fiscal stimulus spending, as it did to counter the global slowdown in 2008-9.”

The ministry signaled in August that fiscal collections would slow further. In today statement, it attributed the ease to gradual moderation in economic growth falling corporate profit and decline in the rise of consumer prices from a high level. Inflation fell to a 15 month low in December at 4.1% after peaking at 6.5% in July.

(Sourced from Bloomberg)