Why is the approval of the special fund for the development of the LED industry "catty"?
According to reports, with the convenience of managing the special funds of the state, Chen Zhubing, the former director of the Department of Comprehensive Affairs of the Enterprise Department of the Ministry of Finance, has required the company to issue a special fund to 20% of the funds, and Chen Zhubing alone or with others The total amount of illegally accepted corporate assets was 24.44 million yuan.
The government has set up special funds to help specific industries or industries. The original opacity of management has turned good things into bad things, breeding chaos and unspoken rules. This not only wastes state funds, but actually destroys the balance of market competition and even affects. Industrial Development.
Recently, Li Xinghua, the director of the Guangdong Provincial Department of Science and Technology, was found to be quite able to explain the problem. Li’s fall is related to the black screen of the Guangdong Provincial Finance’s annual investment of 450 million yuan to set up special funds for the development of the LED industry. Under the unspoken rules, many LED companies are not doing business, and they are thinking. Take the subsidy. The huge subsidies were taken away by listed companies and state-owned enterprises with good government relations. Some enterprises that received subsidies were even empty shells. At the same time, due to information asymmetry, some central enterprises did not even know the existence of certain policy subsidies.
In the absence of effective management, the more government subsidies, the more side effects that sometimes occur. Typical counterexamples in recent years have occurred in the photovoltaic industry. In the photovoltaic industry, too much government subsidies are misleading for many companies. They are not trying to compete for the market, improve quality, and reduce the cost price. Instead, they try to please the government and blindly expand their investment to enter the subsidy list. Overcapacity in the industry and frequent problems.
In addition, it is worth reflecting that the government is trying to support a certain industry and subsidize specific enterprises. Is this model reasonable? In reality, enterprises that can receive government subsidies are often large-scale or have good relations with the government. After receiving subsidies, these enterprises have strengthened their competitive advantages, resulting in the phenomenon of strong and strong, which greatly suppressed those The living space of SMEs. Moreover, subsidized enterprises are also prone to trade disputes. The recent Sino-European PV dispute is an example.
Under the market economy, the government's intervention in the economy is as small as possible, creating an equal competitive environment, levying a reasonable tax burden, and giving enterprises full freedom. This is the best support for an industry. In this sense, the practice of special funds to support specific industries is actually as small as possible. Reduce subsidies, simplify the approval of subsidized fund projects, strengthen supervision, and promote transparent operations, so as to cure the unspoken rules of special fund approval.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
The government has set up special funds to help specific industries or industries. The original opacity of management has turned good things into bad things, breeding chaos and unspoken rules. This not only wastes state funds, but actually destroys the balance of market competition and even affects. Industrial Development.
Recently, Li Xinghua, the director of the Guangdong Provincial Department of Science and Technology, was found to be quite able to explain the problem. Li’s fall is related to the black screen of the Guangdong Provincial Finance’s annual investment of 450 million yuan to set up special funds for the development of the LED industry. Under the unspoken rules, many LED companies are not doing business, and they are thinking. Take the subsidy. The huge subsidies were taken away by listed companies and state-owned enterprises with good government relations. Some enterprises that received subsidies were even empty shells. At the same time, due to information asymmetry, some central enterprises did not even know the existence of certain policy subsidies.
In the absence of effective management, the more government subsidies, the more side effects that sometimes occur. Typical counterexamples in recent years have occurred in the photovoltaic industry. In the photovoltaic industry, too much government subsidies are misleading for many companies. They are not trying to compete for the market, improve quality, and reduce the cost price. Instead, they try to please the government and blindly expand their investment to enter the subsidy list. Overcapacity in the industry and frequent problems.
In addition, it is worth reflecting that the government is trying to support a certain industry and subsidize specific enterprises. Is this model reasonable? In reality, enterprises that can receive government subsidies are often large-scale or have good relations with the government. After receiving subsidies, these enterprises have strengthened their competitive advantages, resulting in the phenomenon of strong and strong, which greatly suppressed those The living space of SMEs. Moreover, subsidized enterprises are also prone to trade disputes. The recent Sino-European PV dispute is an example.
Under the market economy, the government's intervention in the economy is as small as possible, creating an equal competitive environment, levying a reasonable tax burden, and giving enterprises full freedom. This is the best support for an industry. In this sense, the practice of special funds to support specific industries is actually as small as possible. Reduce subsidies, simplify the approval of subsidized fund projects, strengthen supervision, and promote transparent operations, so as to cure the unspoken rules of special fund approval.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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