China's public sector is facing increased pressure to balance its budget. Data in August show that general public fiscal revenue stood at 990 billion yuan, growing at 1.7 percent year on year.

On the other hand, expenditure grew much faster at 10.3 percent, and stood at 1.4 trillion yuan for the month. Analysts say the slow growth of revenue is due to a tax break effect under the value-added tax reform, as well as a large base last year.

As economic growth continues to be under pressure, officials say the national budget will face substantial challenges this year.