Distribution of profits for the state-owned enterprises Thoughts

Abstract: In recent years, profits of state enterprises to explore how to allocate more and more of the article on China's SOE profit distribution system to sort out the history and pointed out the current issue of profit distribution system in order to make profits of state-owned enterprises reform proposals .

Keywords: SOE profits, distribution, reform

State-owned enterprises, especially monopoly, they can not always be able to say over the way consumers, hostage national pricing policy, to grab the market "excess profits." At the same time, tens of billions of dollars each year non-budgeted profit of state-owned enterprises outside, not with the state treasury, did not materialize into a national welfare, these problems are caused by our current state-owned enterprises had profits reflect the distribution system.

One, SOE profit distribution system History
Early days, the state-owned enterprises in general practice "unified revenue and expenditure," the distribution system, that the profits of enterprises turned over all the financial, business all the necessary funds allocated by the state. In this way, conducive to national unity arrangements revenue and expenditure, However, strict control over, bringing a serious incentive problem.

January 22, 1980, State Council approved the State Economic Commission, Ministry of Finance <<on state-owned industrial enterprises retain profits pilot scheme, "the provisions of section forty-six open state-owned profit growth, 40% remain corporate, 60% of the cross country. In this way, a certain extent, the expansion of the operational autonomy of enterprises, but the proportion of corporate retention "flexible" larger, the relationship between the state and enterprises can not be determined, affecting the state's financial stability.

In December 1993, the State Council issued <<financial management system concerning the implementation of revenue-sharing decision>> to adjust the allocation of state and corporate policies and forms, regulations to implement the new tax system as an interim measure. The reform of the distribution of the profits of state-owned enterprises were clear and rigid division: the country should be paid partly by the tax forms, and in accordance with uniform tax rate, all the rest belong to that enterprise .2007 to the Ministry of Finance on December 11, the SASAC issued a "central state-owned capital gains received Interim Measures>> restart the profits turned over to the state. provision of state-owned enterprises turned over to the ratio of annual net profits were different from different industries to perform the following three categories: First, 10%, the second is 5%, third is surrendered or suspended three-year exemption from state-owned holding shares of state-owned enterprises to meet investor dividends dividends by resolution of shareholders in accordance with the distribution of profits.

Second, the existing problem of state-owned distribution system profit
With the deepening of SOE reforms, corporate profits, the distribution pattern of gradual change, but there is no state financial and profit from the existing distribution system to enjoy the state-owned investment income, retained earnings and corporate level has not increased, but decreased due to My country's existing system of distribution of profits, after-tax profits has not been charged, adverse effects have been gradually revealed, especially in the following areas:
First, according to the 1993 State Council <<financial management system concerning the implementation of revenue-sharing decision>> in 1993, the majority of previously registered wholly owned the old state-owned enterprises are not turned over to the after-tax profits, but the existing state-owned enterprises (mostly after 1994, the company reorganized the new state-owned capital, investment income can not be completely in accordance "with the shares of the same interests" principle collection of storage, by businesses classified as "exclusive state capital fund," or long hanging in the "dividends payable" account free of charge.

Second, oil, electricity, telecommunications and other state-owned monopoly, not only occupied the national resources, but also enjoy tax rebates and other financial support to support policy, in a competitive field of other companies there is a clear tendency is not fair.

Third, the state owned capital gains not yet established the case collection system, the state-owned enterprises have the right to freely dispose of capital gains, enterprises with good returns and income continues to expand, and difficult enterprise workers Que decline in revenue, resulting in the internal allocation of the order chaotic state.

Third, the state-owned enterprises profit distribution system a few comments
First, the reform of State-owned Assets Supervision and Administration Commission recommended that State-owned Assets Supervision and Administration Commission shall be directly subordinate to the National People's Congress, the National People's Congress authorized all state-owned assets to perform duties in the current system, the National People's principal large, NPC commissioned the State Council, the SASAC of the State Council entrusted the management of state-owned enterprises, level or too many links, the SASAC directly under the National People's Congress can improve the efficiency of the exercise of property rights the same time, further expand the State-owned Assets Supervision and Administration Commission of the regulation, the financial companies to be regulated, according to the <<Law>> requirement, to further clarify the State-owned Assets Supervision and Administration Commission of the job duties of the disposition of major assets involved, income issues, should be reported to the National People's Congress for approval, and to establish an accountability system, The dereliction of duty, violations investigated.

Second, the central enterprises to deepen reform of state-owned enterprise monopoly is its ability to obtain "super profits" of the important reasons, according to the <<Administrative Licensing Law>> and <<anti-trust>> and other Laws, the non-natural monopoly industry, should allow and encourage private capital to enter, so that state-owned capital investment stood the test of the market to ensure that investment decisions more scientific, and scientific assessment of the value of state capital investment, strengthen financial audits to ensure that state-owned capital investment. Links to free download http://www.hi138.com
Third, improve the investment budget and final accounts of state-owned assets, the program state-owned capital budget is presented as relatively independent within the framework of public finance the budget, reporting regularly to the National People's Congress, also suggested that the existing budget and final accounts of state-owned assets invested into the NPC program review process, the program into a substantive review of the review, public investment destination state assets and earnings, the state-owned assets, return on investment for public expenditure. These measures are designed to allow state-owned enterprises in real terms the rights and obligations of its, so that the interests of state-owned enterprises from the people, giving back to people.

References:
1, either can be. History of SOE profit distribution system [J]. China Economic Weekly, 2006 (45).

2, Sheng Hong: since the reform of state-owned enterprises, profit and nature of [EB / OL]. Http://finance.baidu.com/n/finance/hongguan/hgyw/2008-03-04/10211268398.html, 2008 -03-04.

3, Sheng Hong: distribution solve the system of state-owned profit program idea [EB / OL]. Http://blog.sina.com.cn/s/blog_5107c26901008z7e.html ,2008-04-06. Links to free download Center http://www.hi138.com