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Fiscal budget system effective for central SOEs

(Xinhua)
Updated: 2007-06-16 14:25

China's State asset management body announced Friday a fiscal budget system, requiring State-owned enterprises (SOEs) under the supervision of central government to submit annual budgets and financial statements.

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The temporary measures on fiscal budget management of central SOEs, issued by the State-owned Assets Supervision and Administration Commission (SASAC), will come into effect on June 25.

According to the document, central State enterprises should set up a fiscal budget management system that takes into account all operational activities of in-house departments and subsidiaries.

Official statistics show that there are 157 central State enterprises under the supervision of SASAC.

The document also requires central businesses to set up a budget committee to monitor and appraise budget implementation.

The fiscal report should reflect the business's capital operation, operational returns, cash flow and other important financial items in a fiscal year, it said.

SASAC will ask enterprises to rectify their problems if they fail to submit the report in time or in accordance with the requirements, or fail to implement their budgets properly, said the document.