Self-financing

Interpretationofidioms

Overview

[Phonetic]zìfùyíngkuī

[Explanation]IamresponsiblefortheprofitAndlosses;self-management,self-financing(judicialinterpretation)

[Usage]asapredicateandattributive;referstoone’sownresponsibility

[English]beresponsibleforitsownprofitsorlosses

[German](fürGewinnundVerlust)selbsthaftend

Basicrequirements

Underthepremiseofcompletingnationaltaxes,enterprisesmustuseincometooffsetexpenditures,profitsareattheirdisposal,andlossesarealsobornebythemselves.Enterprisesareresponsiblefortheirownprofitsandlosses,whichcanunifyresponsibilities,powers,andinterests,whichisconducivetogivingplaytotheenthusiasmoftheenterprise'sproductionandoperation,enhancingthevitalityoftheenterprise,andpromotingthedevelopmentofproductivity,whichisalsoconducivetothefurtherimprovementofsocialproductionrelations.CollectivelyownedenterprisesinChinaarecompletelyself-financingenterprises;enterprisesownedbythewholepeoplehavealsoimplementedaself-financingsystembefore,buttheyarenotself-financinginacompletesense.Theprofitsofenterpriseshaveincreased,andtheywillbesharedwiththestateaccordingtotheprescribedproportion,andtheirprofitswilldecreaseorevenoperate.Intheeventofaloss,itseconomicbenefitswillonlybereducedaccordingtothecorrespondingproportion.

History

InChina,self-financingwasusedforthefirsttimewhenthecountrybasicallycompletedagriculturalandhandicraftproductioncooperativesin1956.

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