Industrial Production News
- Central SOEs to return part of profits to exchequer next year
Date: 17-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 14 (Xinhua) -- Central state-owned enterprises (SOEs) will begin to return some of their annual profits to the Ministry of Finance next year, according to a document released by the State Council, China's cabinet, on Thursday.
The process will begin on a trial basis for some SOEs this year.
Since 1994, central SOEs have retained all their profits in their own coffers.
The document on State Council's proposals on budgeting of state assets operation on a trial basis said finance authorities at all levels were responsible for budgeting. Part of the budgeted expenditure from state assets would be used for social security purposes.
It says returns on state capital include profits to be returned to the state by wholly-state-owned enterprises, dividends of enterprises with state holdings and proceeds from transfers of state-owned property rights and of state equities.
Budgeted expenditure from state assets would be mainly used for central SOE operation, development and restructuring, and be used to pay for cost of state-owned enterprises reform.
According to the National Bureau of Statistics, from 2003 to 2006, central SOEs saw their profits increase by 151.1 percent from 300.6 billion yuan (40 billion U.S. dollars) to 754.7 billion yuan.
There are 168 central enterprises under the supervision of the State-owned Assets Supervision and Administration Commission.
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