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BEIJING, March 16 -- Growth in China's fiscal revenue slowed sharply in the first two months of 2015 while expenditure increased, suggesting that proactive fiscal policy measures are gaining momentum.

Fiscal revenue rose 3.2 percent year on year to reach 2.57 trillion yuan (417.5 billion U.S. dollars) in the first two months of 2015, the Ministry of Finance announced on Monday.

This was a sharp slowdown from the 8.6 percent gain seen in 2014, as downward pressure on the economy continued.

Due to pressure from a housing slowdown, softening domestic demand and unsteady exports, the economy grew 7.4 percent in 2014, its weakest annual expansion in 24 years. A string of economic indicators for 2015, including manufacturing and trade data, all suggested continued weakness.

During the January-February period, the central government collected 1.16 trillion yuan in fiscal revenue, down 1.7 percent year on year, while local governments saw fiscal revenue expand 7.5 percent to 1.41 trillion yuan.

In particular, revenue related to the property sector slowed sharply. Real estate business tax fell 1.6 percent year on year to 96.5 billion yuan, and deed tax decreased 12.5 percent to 54.3 billion yuan.

In contrast to the slowing revenue, fiscal expenditure maintained double-digit growth. In the first two months national fiscal spending expanded 10.5 percent from a year ago to 1.89 trillion yuan, with spending on transportation surging 52.5 percent.

"This shows China's proactive fiscal policy is gaining momentum," said a research note by China International Capital Corp..

Premier Li Keqiang, speaking at the opening of the annual parliamentary session, stressed that proactive fiscal policy and prudent monetary policy would continue in 2015 to sustain growth.

China plans to raise its budget deficit to 2.3 percent of its gross domestic product (GDP) for 2015, up from last year's target of 2.1 percent.