BEIJING, April 22 Reuters China39;s fiscal revenue in the first quarter fell 2.3 from a year earlier, as some special factors including previous tax cut policies weighed, the finance ministry said on Monday.

The world39;s secondbiggest economy grew faster than expected in the first quarter, data showed last week, offering some relief to officials, but March indicators showed domestic demand remains frail. The property downturn continues to hurt local governments39; finance and fiscal capabilities, analysts said.

China39;s tax revenue dropped 4.9 to 4.9 trillion yuan 676.48 billion in the first three months, but revenue from cultural, tourism and advanced manufacturing industries grew fast, Wang Dongwei, vice finance minister, told a press conference in Beijing on Monday.

Excluding the influence of special factors such as a high base and tax cut policies of 2023, China39;s fiscal revenue grew about 2.2 in the first quarter, he added.

Fiscal expenditures grew 2.9 on year to nearly 7 trillion yuan in the first three months, according to Wang, slowing significantly from 6.7 growth seen in the first two months.

Responding to a question about the slow issuance of local government special bonds in JanuaryMarch, Wang Jianfan, an official at the ministry said that issuance was related to funding needs of local projects, seasonal influence on construction conditions and interest rates in the bond market.

In response to the impact of COVID previously, the ministry also stepped…