The State Council has recently released the “Opinions on Further Improving the State-owned Capital Operation Budget System,” outlining key reform measures to expand the coverage of state-owned capital operating budgets and improve the efficiency of expenditure.
The first major reform measure aims to improve the mechanism for handing over state capital gains. This includes expanding the coverage of state-owned capital operating budgets, enhancing the income handover mechanism for wholly state-owned enterprises and companies, and optimizing the income handover mechanism for state-owned shares of state-controlled and joint-stock enterprises. The management of budget revenue from state-owned capital operations will also be strengthened to ensure accurate profit data and timely declaration and handover of revenue.
The second area of reform focuses on improving the efficiency of state-owned capital operation budget expenditures. This includes optimizing the expenditure structure, prioritizing key areas and weak links, and providing financial support for major national strategic tasks. Expenditure management will be strengthened to ensure policy orientation and improve the effectiveness and accuracy of fund arrangements and use. Additionally, the State Council aims to promote budget performance management and explore overall performance evaluations of state-owned capital operating budgets.
The third key reform measure is to improve the budget management of state-owned capital operations. This involves strengthening the management of the directory of state-owned enterprises, collecting statistics on the number, assets, interests, profits, and losses of invested enterprises, and establishing a directory of state-owned enterprises. Budget preparation and reporting will also be improved to ensure the quality of draft state-owned capital operation budgets and balance revenue and expenditure. Furthermore, the State Council will actively accept the supervision of the National People’s Congress and audit.
The release of these “Opinions” underscores the government’s commitment to enhancing the management and effectiveness of state-owned capital operation budgets. These reforms are aimed at fostering transparency, efficiency, and accountability within the state-owned sector.
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