China dials back budget spending by most in over four years

China’s broad fiscal spending slumped in October by the most since at least 2021, crippling a key driver of investment and economic growth.

The combined expenditure in China’s two main budgets — the general public account and the government-managed fund book — tumbled 19% in October from a year earlier to 2.37 trillion yuan ($334 billion), according to Bloomberg calculations based on data released by the Ministry of Finance on Monday.

It was the steepest slide since comparable data started in early 2021, while the value of money spent was the least since July 2023. Goldman Sachs Group Inc. said its proprietary “augmented fiscal deficit” metric narrowed last month, indicating that budget policy “turned less supportive of growth.”

The plunge reflects an evolution of government policies an