Government spending in China posted a rare drop in October from a year earlier, largely due to a high base last year. Meanwhile, government revenues rose in the first 10 months of this year. 

Government spending dropped 12.5 percent in October but still surged 10 percent during the first 10 months. That came as China looked to shore up economic growth. Central government spending rose 5.6 percent in October from a year earlier, while spending by local governments dipped 15.5 percent.

Sector-wise, the government maintained solid spending in education, social security, medical services and family planning. What's worth noting is that spending rose over 40 percent on repayment of interest on debts. Here's how experts explain it.

Overall government revenues rose 5.9 percent in October as well as in the first 10 months of the year. That implied a fiscal deficit of 1.1 trillion yuan or 161 billion US dollars in the January-October period. The fiscal deficit narrowed from levels seen in the first nine months.

Tax revenue rose 7 percent in October, mainly bolstered by a 75 percent jump in the value added tax. Sales tax dropped by almost 100 percent due to China's tax reform to shift to VAT from sales tax. Experts say the government's on track to hit its tax revenue budget this year.